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7.22An American company that imports leather goods from England is most likely to be a)long pounds b)short pounds c)can't tell Ans:b Why is the answer
7.22An American company that imports leather goods from England is most likely to be
a)long pounds
b)short pounds
c)can't tell
Ans:b
Why is the answer b?
I thought since the company wants to import from England, it wants to hedge against the appreciation of pounds, because it will make their imports more expensive. So it should long the pounds instead of shorting the pounds.
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