Implications of purchasing power parity
Explain implications of the purchasing power parity for the operating exposure.
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In case changes of the exchange rate are matched through the inflation rate differential between the countries, competitive positions of the firms will not get distorted by the changes of exchange rate. Firms are not subjected to the operating exposure.
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In the year 1995, working group of the French chief executive officers was formed by the Confederation of French Industry (CNPF) and the French Association of Private Companies (AFEP) for studying the structure of the French corporate governance. Group has reported th
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