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An American company plans to borrow money to build a plant in Brazil and sell cars in Brazil in the local currency, the real. It
An American company plans to borrow money to build a plant in Brazil and sell cars in Brazil in the local currency, the real. It takes three years to build the plant. Therefore,
It should consider a long-term loan in Brazilian reals
It should consider a three-year loan in Brazilian reals
It should borrow at a fixed rate in US dollars
It should use a short-term, variable rate loan in US dollars.
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