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Chapter 6

The financial context of business II:

International aspects

Outcome

By the end of this session you should be able to:

 explain the role of the foreign exchange market in facilitating trade and in setting
exchange rates

 calculate the impact of exchange rate changes on export and import prices and
the value of the assets and liabilities of the business

 explain the role of hedging and derivative contracts in managing the impact of
changes in exchange rates

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 6 of your Study Text

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