Firms that conduct business in a country's domestic market may be affected by a fall in the local exchange rate that leads to an increase in the rate of inflation.

Name: Firms that conduct business in a country's domestic market may be affected by a fall in the local exchange rate that leads to an increase in the rate of inflation.
Brand: Quizplus
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Question

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If there is a fall in the exchange rate a firm's profits when translated to the overseas parent company could be affected unless hedged in some way.

Firms That Conduct Business in a Country's Domestic Market May