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Question 1: Why might a company want to hedge its balance sheet exposure? What is the paradox associated with hedging balance sheet exposure? Question 2:

Question 1: Why might a company want to hedge its balance sheet exposure? What is the paradox associated with hedging balance sheet exposure?

Question 2: What are the two major conceptual issues that must be resolved in translating foreign currency financial statements? Do you believe one is more important than the other? Why or why not?

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