Question
A U.S. firm sources inputs to its manufacturing process from Australia and pays for these in AUD. The U.S. firm exports a portion of its
A U.S. firm sources inputs to its manufacturing process from Australia and pays for these in AUD. The U.S. firm exports a portion of its final product to Canada and is paid in CAD. For the U.S. firm more than 80% of the overall business of the company is within the domestic market and transfers occur in USD. The company is looking to raise a small amount of debt capital. It could reduce the overall foreign exchange risk if the loan is denominated in:
| None of the other options could reduce risk | ||
| AUD | ||
| CAD | ||
| USD |
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The 3 Signal The Investing Technique That Will Change Your Life
Authors: Jason Kelly
1st Edition
0142180955, 978-0142180952
