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Author Question: The following is an example of Radio Shack hedging its foreign currency risk A) needing to pay ... (Read 102 times)

chads108

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on: Jun 30, 2018
The following is an example of Radio Shack hedging its foreign currency risk
 
  A) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack makes a forward-exchange deal to buy yen.
  B) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack makes a forward-exchange deal to sell yen.
  C) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack buys yen at a spot-exchange 1 month from now.
  D) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack sells yen at a spot-exchange 1 month from now.
  E) needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack sells yen in a forward-exchange deal.

Question 2

Intraindustry trade can lead to lower prices and job creation in both the exporting and the importing nation.
 
  Indicate whether the statement is true or false


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krakiolit

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

TRUE


chads108

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

sarah_brady415

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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