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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:

  1. Financial Risk Factors
  2. Political Risk
  3. 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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