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  3. i) explain relative purchasing power parity; and i

i) Explain relative purchasing power parity; and ii) give an example to support your answer. i) What...

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Finance

  1. i) Explain relative purchasing power parity; and ii) give anexample to support your answer.
  2. i) What is political risk; and ii) give an example of asignificant political risk faced by any company operating/tradinginternationally of your choice.

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a i Relative Purchasing Power Parity RPPP is a carryforward of the Purchasing power parity theory which states that countries with inflation rates higher than another country will have a devalued currency rate compared to the lower inflation country This can be understood in a way that the difference in inflation between two countries is the    See Answer
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Transcribed Image Text

i) Explain relative purchasing power parity; and ii) give anexample to support your answer.i) What is political risk; and ii) give an example of asignificant political risk faced by any company operating/tradinginternationally of your choice.

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