Full Text

foreign exchange loans

John O'Connell


Subject Business and Management » International Management


Extract

If a company takes out a loan in other than the currency of its home country, the loan is considered a foreign exchange loan. Foreign exchange loans are commonly made to companies which want to take advantage of lower interest rates or other favorable loan terms offered in a foreign country. The major drawback to such loans is that if exchange rates change, all advantages from the better terms may be wiped out. ... log in or subscribe to read full text

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The Blackwell Encyclopedia of Management



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