The foreign exchange (FX) market is one of the highest-volume markets in the financial world; annualized FX trading equates to an astounding 13 times global GDP. Multinational corporations are, necessarily, major participants in the FX market. In order to hedge their currency risk, these companies trade large volumes of FX-based derivatives. However, the playing field for these trades is often tilted in favor of their banking partners.
Cross-border revolving credit facilities, derivatives among the agreements that could be affected.
A transatlantic tie-up has been delayed as both firms weigh a tax bill that one consultant speculates could run into the "tens of millions."
Canada and Mexico reject the U.S. hard line.
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Follow these 4 steps to help protect profit and avoid currency related losses while doing business across borders.
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