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To protect itself against transaction exchange rate risk, a U.S. company that purchases automobiles from a Japanese manufacturer may use all of the following techniques
To protect itself against transaction exchange rate risk, a U.S. company that purchases automobiles from a Japanese manufacturer may use all of the following techniques EXCEPT borrow U.S. funds and invest them in interest-bearing Japanese securities execute a contract in the forward exchange market sell yen in the spot market at the time of each transaction execute a contract in the foreign exchange futures market 3 pts Question 4 Firms engaged in international transactions incur exchange rates among currencies. risk because of fluctuations in the o Credit O Political O Market Exchange rate
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