Amherst Corporation is headquartered in the United States. It has a subsidiary in Spain that produces tennis racquets, export it to nearby European countries, and remits profits back to the United States. The countries that purchases its racquets uses the euro as their currency, which is the same currency used in Spain. 

Explain how Amherst Corporation may be exposed to exchange rate risk. (Conversely if you think Amherst Corporation. is not expose to exchange rate risk, explain why not).

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Because Amherst Corporation operates in Spain and uses the euro as its trading currency it may be ex... View the full answer