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California Rice, Inc. (CRI), a U. exporter of agriculture products to Japan, denominates its exports in dollars and has no other international...

California Rice, Inc. (CRI), a U.S. exporter of agriculture products to Japan, denominates its exports in dollars and has no other international business.  It can borrow dollars at 9 percent to finance its operations or borrow yen at 3 percent. If it borrows yen, it will be exposed to exchange rate risk. How can CRI borrow yen and possibly reduce its economic exposure to exchange rate risk?

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4 comments
  • what is Kerr?
    • maggielui12
    • May 02, 2018 at 5:07pm
  • It is an exporter of products to Japan, you can replace Kerr with California Rice, so as to match with the question but the explanation still remains.
    • ombatied
    • May 02, 2018 at 5:30pm
  • ok thank you
    • maggielui12
    • May 02, 2018 at 5:46pm
  • my pleasure....
    • ombatied
    • May 02, 2018 at 5:51pm

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