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Any changes in the exchange rate can significantly impact how a global organization operates. There are ways a company can protect itself from these risks, forward exchange rates and currency swaps (Hill, 2002). As business continuously expands into the global arena more organizations are finding it necessary to pay close attention to foreign exchange market. These companies must follow the foreign exchange market closely and should develop appropriate hedging strategies to protect themselves. Exchange rate risk is the unexpected exchange rate that may cause an organization to lose or gain income...
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