Solved: Risks and opportunities for a domestic-multinational firms, Finance Basics

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Risks and opportunities for a domestic-multinational firms

Problem:

Some people believe the best way to manage exchange rate exposure is to do nothing. They believe that currencies are unpredictable. They believe trying to manage currency risk is useless and a waste of money because of this unpredictability.

Explain how exchange rate exposure may create risks and opportunities for a domestic and multinational firms.

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Finance Basics: Risks and opportunities for a domestic-multinational firms

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