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QUESTION 2 a. Foreign exchange risk or exchange rate risk is a financial risk that occurs when a financial deal is denominated in a currency

QUESTION 2 a. Foreign exchange risk or exchange rate risk is a financial risk that occurs when a financial deal is denominated in a currency other than that of the base currency of the company. Explain the following types of risks that international firms are exposed to: a. Transaction risk b. Translation risk c. Economic risk b. For each of the risks explained above, state three (3) ways of mitigating them.

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