Exchange rate risk
A) exists also in direct foreign investments and foreign portfolio investments.
B) exists when the contract is written in terms of the foreign currency.
C) does not exist if the international trade contract is written in terms of the domestic currency.
D) all of the above
D
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During the recession, the lower priced, younger, street savvy third tier, Armani Exchange, picks up the selling slack for the upper tiers, which is in line with the recommendation to fine-tune brand and product offerings during an economic downturn. Indicate whether the statement is true or false
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What will be an ideal response?