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During this week we covered international finance and managing foreign exchange risk. Provide an example of how a U.S. corporation engaged in a purchase of
During this week we covered international finance and managing foreign exchange risk. Provide an example of how a U.S. corporation engaged in a purchase of $2 million of goods from a supplier in France for which the firm must pay the French supplier in Euros in 30 days, can employ a foreign currency contract to help to mitigate any possible foreign currency exchange rate risk (between the U.S. Dollar and the Euro) over the 30-day period. In your post address the possibility of both a positive and negative outcome to this hedging strategy
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