Solved: Multinational company in studying exposure to political risk, Finance Basics

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Multinational company in studying exposure to political risk

Question 1. What procedure(s) would you recommend for a multinational company in studying exposure to political risk? What actual strategies can be used to guard against such risk?

Question 2. Suppose a Danish krone is selling for $0.1845 and a Maltese lira is selling for $2.7211. What is the exchange rate (cross rate) of the Danish krone to the Maltese lira? That is, how many Danish krone are equal to a Maltese lira?

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Finance Basics: Multinational company in studying exposure to political risk

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