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Company JP has US dollar costs and with revenues in yen. Company HK has US dollar costs and revenues in Hong Kong dollars (HKD).
Company JP has US dollar costs and with revenues in yen. Company HK has US dollar costs and revenues in Hong Kong dollars (HKD). Assume that the HKD-USD exchange rate will remain quite stable, while the yen- USD exchange rate is quite volatile. Which firm has a higher exposure to exchange rate risk. O The firms have the same levels of exposure Neither firm has exchange rate risk if they have costs in USD Company HK Company JP
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