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Assume that, under a system of flexible exchange rates, Mexicans decide to increase their investments in Canada.As a result:
Currency Risk
The risk of loss from fluctuations in foreign exchange rates when investing in foreign currencies or overseas assets.
Canadian Investors
Canadian investors refer to individuals or entities based in Canada that allocate capital in various financial vehicles such as stocks, bonds, and real estate, aiming for future financial returns.
Repatriated
Refers to the process of converting foreign currency into the currency of one's home country or returning assets from overseas to the home country.
Before-Tax Profit
The earnings of a company before income tax expense is deducted, indicating the gross profitability from operations and other activities.
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