Taber Mills is a Canadian firm operating a subsidiary manufacturing plant in Mexico. To offset the firm's long-run exchange rate risk, Taber Mills should:
A) Invest in another Canadian firm.
B) Convert some pesos to dollars and invest those dollars in a Canadian bank.
C) Convert dollars to pesos and deposit them in a savings account in Mexico.
D) Borrow pesos from a Mexican lender.
E) Borrow dollars and deposit those dollars in a Mexican bank.
Correct Answer:
Verified
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