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Foreign Currency Approach
A strategy or method for managing the risks and effects of foreign exchange rate fluctuations on investments or business transactions.
Capital Budgeting
The process a business undertakes to evaluate potential major projects or investments, such as new machinery, expansion of production or new facilities.
Translation Exposure
The risk that a company's financial statements can be affected by changes in exchange rates when foreign operations are translated into the domestic currency.
Dollar/Peso Exchange Rate
The value of one currency expressed in terms of another currency, specifically how many Mexican pesos one US dollar can buy.
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