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Risk management

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Risk management

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • September 12, 2022 at 1:39 pm #666220
    johnbriane
    Member
    • Topics: 170
    • Replies: 160
    • ☆☆☆

    Economic risk, is type of exchange rate risk that can be avoided by operating in domestic markets only

    This statement is wrong right sir Because it is a risk that all business faces on a day to day basis

    September 12, 2022 at 4:21 pm #666236
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    You are correct (however it is greater when trading abroad because you are less certain about changes in the economy in foreign countries).

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