International Finance

Operational Techniques for Managing Transaction Exposure

Operational strategies having the virtue of offsetting existing foreign currency exposure can also mitigate transaction exposure. These strategies include − ●      Risk…

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Hedging Translation Exposure

The above exhibit indicates that there is still enough translation exposure with changes in the exchange rate of the Mexican…

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Factors Affecting International Equity Returns

Macroeconomic factors, exchange rates, and industrial structures affect international equity returns. Macroeconomic Factors Solnik (1984) examined the effect of exchange…

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