A is exchange rate risk a relevant relevant

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 12/30/2010 for the course MBA FI565 taught by Professor Benard during the Spring '10 term at Keller Graduate School of Management.

Ask a homework question - tutors are online