If a firm purchases its inputs and sells its goods in the same foreign market, evaluation of the project ________.

Name: If a firm purchases its inputs and sells its goods in the same foreign market, evaluation of the project ________.
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Question

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When a firm purchases inputs and sells goods in the same foreign market, the exchange rate risk is largely mitigated as both inputs and outputs are in the same currency. Therefore, evaluation of the project does not require consideration of exchange rate risk.

If a Firm Purchases Its Inputs and Sells Its Goods