Manon

Currency Risk.



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Currency risk is the risk of losses arising from adverse changes in currency exchange rates. Currency risk arises from the need to convert one currency into another currency in order to settle a transaction. For example, a U.S. company that exports goods to a customer in Japan will incur currency risk if the value of … Read more

What is elasticity in economics?



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When we talk about elasticity in economics, we talk about the price elasticity of the demand curve for a certain product or service. Actually, with the concept of elasticity, what is done is to measure the response capacity of a certain good or service to a price change. Thus, the elasticity of demand can be … Read more