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Unformatted text preview: across numerous countries, its value will not be affected by exchange rate movements because of offsetting effects. A. Is Exchange Rate Risk A. Relevant? Relevant?
4. Stakeholder Diversification Argument
Some critics also argue that if stakeholders (such as creditors or stockholders) are well diversified, they will be somewhat insulated against losses experienced by an MNC due to exchange rate risk. B. Types of Exposure
1. Three exposures from Exchange Rate Risk: a. Transaction b. Economic c. Translation C. Transaction Ex...
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