Currency Risk Is a Concern for Any International Merger and Acquisition

question 11

True/False

Currency risk is a concern for any international merger and acquisition activity. For instance, once the bidder has successfully won the acquisition, the exposure evolves from a transaction exposure to a contingent exposure.

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Definitions:

Federal Budget Deficits

The excess of federal government expenditures over its revenues within a given fiscal year, leading to borrowing or debt accumulation.

Government Spending

Expenditures made by the government sector on goods and services, including infrastructure, education, and security, to influence the economy.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Crowding In

The potential for government spending to stimulate private investment in an otherwise dead economy.