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The principal mechanism for redistributing incomes is
Short-Run Exposure
Financial risk faced by companies in the immediate future due to exchange rate movements, affecting the value of foreign currency denominated transactions.
Exchange Rate Risk
The possibility that investors may face financial losses as a result of changes in foreign exchange rates.
Fluctuations
Variations or changes in level, degree, or value over time, often seen in financial markets and economic indicators.
Unanticipated Changes
Sudden and unexpected events or changes that can significantly impact the economy, markets, or specific sectors without prior warning.
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