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QUESTION

TABLE 6.1 TRANSACTION DETERMINANTS OF LONG-TERM EXCHANGE RATE TRENDS United States Germany/Euro Area Real Real Japan Real Real Real Real GDP R PPI...

1. Analyze the data in Table 6.1 on page 192 to determine what the likely near-term trend movement of the U.S. dollar will be. 2. Analyze how these same factors will affect the euro-dollar rate. 3. How do companies manage the risk of fluctuating foreign exchange ratesTable is included in the attachment.

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