The interest rate in Indonesia is commonly higher than the interest rate in the United States, which
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The interest rate in Indonesia is commonly higher than the interest rate in the United States, which reflects a high expected rate of inflation there. Why should Nike consider hedging its future remittances from Indonesia to the U.S. parent even when the forward discount on the currency (rupiah) is so large?
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Nike may still consider hedging under these conditions because the alternative is to be exp...View the full answer
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