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Use the figure below to answer the following questions.
Figure 26.3.3
-Refer to Figure 26.3.3. Which one of the graphs illustrates a full-employment equilibrium?
Political Risk
Risk related to changes in value that arise because of political actions.
Foreign Subsidiary
A foreign subsidiary is a company that is owned or controlled by another company but operates in a different country from the parent company.
Parent Company
is a corporation that owns enough voting stock in another firm to control its board of directors and therefore its operational and financial policies.
Forward Rate
The agreed-upon exchange rate for a currency pair to be traded at a future date, used in forward contracts.
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