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Q1. (a) Explain the following risks in international finance: Financial Risk Factors Political Risk Country Risk (b) Explain briefly the following forms of exposure to
Q1. (a) Explain the following risks in international finance:
- Financial Risk Factors
- Political Risk
- Country Risk
(b) Explain briefly the following forms of exposure to exchange rate fluctuations:
(i) Transaction exposure
(ii) Economic exposure
(iii) Translation exposure
(c) Explain why some MNCs are subject to a greater degree of translation exposure.
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