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Why Amreli Steel Mill is exposed to fluctuations

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Question - Amreli Steel Mill produces products that require a huge amount of energy. They use locally produced natural gas to produce their own electricity for production purposes. However, their competitor (e.g. Aisha Steel Mill) uses imported oil to produce their own energy for production purposes. Explain why Amreli Steel Mill is exposed to fluctuations in both oil and natural gas prices and how they can reduce the risk?

Reference no: EM133032785

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