Question: 1. Exchange rate effects a. Explain the difference in the cost of financing with foreign currencies during a strong Australian dollar period versus a weak

1. Exchange rate effects

a. Explain the difference in the cost of financing with foreign currencies during a strong Australian dollar period versus a weak Australian dollar period for an Australian company.

b. Explain how an Australian-based MNC issuing bonds denominated in Malaysian ringgit may be able to offset a portion of its exchange rate risk.

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