How exchange rate fluctuations pose a risk


Question 1. Briefly discuss why a domestic company desirous of entering foreign markets might see attractive advantages in forming strategic alliances with foreign companies. What are the risks and disadvantages of such alliances?

Question 2. Explain how exchange rate fluctuations pose a risk to manufacturing companies who rely upon an export strategy to compete in foreign markets.

Question 3. Identify and briefly discuss the key reasons why a company may consider expanding outside its domestic market.

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Finance Basics: How exchange rate fluctuations pose a risk
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