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An unexpected change in exchange rates impacts a firm's expected cash flows at three levels, depending on the time horizon used (Short Run, Medium Run,
An unexpected change in exchange rates impacts a firm's expected cash flows at three levels, depending on the time horizon used (Short Run, Medium Run, and Long Run). Describe the three operating exposure phases of adjustment if parity conditions do not hold among foreign exchange rates, national inflation rates, and national interest rates. Please give a detailed explanation!
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