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To reduce economic exposure, restructuring of operations should reduce the difference between a foreign currency's inflows (revenues) and outflows (expenses). Laketown Co. has some expenses
To reduce economic exposure, restructuring of operations should reduce the difference between a foreign currency's inflows (revenues) and outflows (expenses). Laketown Co. has some expenses and revenues in euros. If its expenses are more sensitive to exchange rate movements than revenues (i.e., euro expenses exceed euro revenues), it could reduce economic exposure by sensitive than expenses, it could reduce economic exposure by If its revenues are more a. decreasing foreign revenues; decreasing foreign expenses b. decreasing foreign revenues; increasing foreign expenses c. increasing foreign revenues; decreasing foreign expenses d. increasing foreign revenues; increasing foreign expenses
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