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    Business
  3. Study Set
    International Financial Management
  4. Exam
    Exam 12: Managing Economic Exposure and Translation Exposure
  5. Question
    A Limitation of Hedging Translation Exposure Is That Translation Losses
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A Limitation of Hedging Translation Exposure Is That Translation Losses

Question 24

Question 24

True/False

A limitation of hedging translation exposure is that translation losses are not tax deductible, whereas gains on forward contracts used to hedge translation exposure are taxed.

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