As the financing of a foreign project by the parent ____ relative to the financing provided by the subsidiary, the parent's exchange rate exposure ____.

Name: As the financing of a foreign project by the parent ____ relative to the financing provided by the subsidiary, the parent's exchange rate exposure ____.
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Question

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When the parent company increases its financing of a foreign project, its exposure to exchange rate fluctuations also increases because it has more financial interest in the foreign currency.

As the Financing of a Foreign Project by the Parent