respond to questions 2
Reread the closing case: embraer and the wild ride of the Brazilian real and answer the questions:
1)What does the recent economic history of Brazil tell you about the relationship between price inflation and exchange rates? What other factors might determine exchange rates for the Brazilian real?
2)Is a decline in value of the real against the U.S. dollar good for Embraer, bad for Embraer, or a mixed bag? Explain your answer.
3)What kind of foreign exchange rate risks is Embraer exposed to? Can Embraer reduce these risks? How?
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