When Gandor was assessing this proposed joint venture, some of its managers recommended that Gandor borrow the

Question:

When Gandor was assessing this proposed joint venture, some of its managers recommended that Gandor borrow the Chinese currency rather than dollars to obtain some of the necessary capital for its initial investment. They suggested that such a strategy could reduce Gandor’s risk. Do you agree? Explain.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...