International finance
Free IMA CMA Part 2 (Strategic Financial Management) lesson in Corporate Finance. 11 min read, ~1,586 words.
A depreciating home currency makes exports cheaper abroad and imports more expensive at home; an appreciating home currency does the reverse. Exchange rates move with interest rate differentials, inflation differentials, balance of payments, political risk, and central bank intervention. Transaction exposure is hedged with forwards, futures, currency swaps, and currency...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2B6
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