If a U.S. firm plans to frequently purchases goods from Hong Kong over the next several years, it does not have to worry about exchange rate risk.

Name: If a U.S. firm plans to frequently purchases goods from Hong Kong over the next several years, it does not have to worry about exchange rate risk.
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Question

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The U.S. firm does have to worry about exchange rate risk as the exchange rates between the U.S. dollar and Hong Kong dollar may fluctuate over time, affecting the cost of the goods purchased.

If a US Firm Plans to Frequently Purchases Goods from Hong Kong