What is a functional currency? What is a non-functional currency?
Answer to relevant QuestionsWhat are the major differences in translating assets between the current rate method and the temporal method? Explain how back-to-back loans can hedge foreign exchange operating exposure. An alternative arrangement for managing operating exposure between firms with a continuing buyer-supplier relationship is risk sharing. Explain how risk sharing works. Apart from improving liquidity and escaping from a segmented home market, why might emerging market MNEs further lower their cost of capital by listing and selling equity abroad? a. What is a private equity fund? b. How do they differ from traditional venture capital firms? c. How do private equity funds raise their own capital, and how does this action give them a competitive advantage over local ...
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