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Which One of These Is a Suggested Means of Reducing

Question 40

Multiple Choice

Which one of these is a suggested means of reducing long-run exposure to exchange rate risk?


A) Compiling financial statements only in foreign currency terms
B) Using foreign resources to produce products sold in that foreign region
C) Borrowing domestic currency,exchanging it for foreign currency,and investing it in foreign investments
D) Ensuring any foreign operation requires significant parent company involvement
E) Using current spot rates to fund long-term assets

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