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Explain the determinants of operating exposure.
Answer: The main determinants of a company’s operating exposure are
(a) The structure of the markets where the company sources its inputs, like labor and materials, and sells its products, and
(b) The company’s capability to mitigate the effect of exchange rate changes by adjusting its markets, product mix, and sourcing.
Explain Composite Currency Bond Composite currency bonds are denominated in a currency basket, like SDRs or ECUs, in place of a single currency.They are often known as currency
what is overtrading
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