Compare purchase power parity and interest rate parity


Post an analysis of the financial and nonfinancial factors that influence foreign currency risk. In your analysis, do the following:

1. Compare purchase power parity and interest rate parity.

2. Differentiate between the use of home currency and foreign currency approaches.

3. Discuss the effect of global political uncertainty on exchange rate risk.

Be sure to support your work with a minimum of two specific citations from this week’s Learning Resources and one or more additional scholarly sources.

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Financial Management: Compare purchase power parity and interest rate parity
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