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Factor.
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Absolute Purchasing Power Parity
The theory that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.
Exchange Rate
The price of one country's currency in terms of another currency.
Mexican Pesos
The official currency of Mexico, symbolized as $ or MXN in the financial markets.
Political Risk
The risk associated with changes in government policy or political instability that can affect investments in a particular country.
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