According to DFAT, the US and UK are the two main destinations for Australian investment. In 2019, about 30% and 17% of Australian overseas investment went to the US and the UK respectively. Assume that investment returns are in the USD and British pound. Discuss the economic and translation exposure facing Australian companies investing in these two countries, taking into account the recent movements in the value of A$ vis-a-vis the USD and British pound.

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If 17 and 30 of Australian investment went to US and UK countries and return of investment Australi... View the full answer