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ID number:748549
Evaluation:
Published: 15.08.2006.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The Initial Problem
When a firm sells to foreign customers, either the firm or its buyers are subject to the exchange rate risk inherent in such transactions. The sales/marketing side of the firm is primarily concerned with facilitating these transactions by doing everything in its power to make the buyer happy with its overall offering, while the treasury/finance side of the firm is primarily concerned with minimizing the financial risk inherent in such transactions. …

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