Question: In simple terms, what does the interest rate parity theory mean? What does the law of one price say? 2. What is the international Fisher

In simple terms, what does the interest rate parity theory mean? What does the law of one price say? 2. What is the international Fisher effect? Define the types of risk that are commonly referred to as political risk, and give some examples of them. 2. What is exchange rate risk? Why would a multinational firm be concerned about it?

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