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Describe how currency fluctuations can present considerable risk to international business.
Leverage
The use of borrowed funds to increase the potential return of an investment or project.
Cost of Equity
The rate of return a company must offer investors to compensate for the risk of investing in its stock.
Liquidation
Liquidation is the process of winding up a company's operations and selling its assets to pay off debts, ultimately leading to the dissolution of the company.
Business Risk
The possibility that a company will have lower than anticipated profits or experience a loss rather than taking a profit.
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