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.
Exhibit 3.3 states that in year 1991, the U.S. had current account deficit and consecutively a capital account deficit. Explain about how this may occur?
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Define Expenditures with suitable example?
Write down the pre-requisites for triumphant accomplishment of uniform costing?
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