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What Are the Major Drawbacks of Licensing According to the Internalization

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What are the major drawbacks of licensing according to the internalization theory?

Understand the basic concepts and terminology related to foreign exchange transactions and hedging strategies.
Calculate the impact of foreign currency transactions on financial statements including income statements and balance sheets.
Identify and analyze the use of forward contracts and options in hedging foreign exchange risk.
Determine the accounting treatment for forward contracts and currency options under U.S. GAAP.

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