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investment and the LDC gov-ernment offers a package specifying taxes and sharing rules by a JV contract. Such sharing rules can … be designed to enhance the level of optimal investment under the presence of distortions and asymmetric information. We …
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We study the impact of exchange rate risk on an exporting firm in a developing country when there is no forward market in the foreign currency. However there exists a forward traded asset in this country the price of which is highly correlated to the foreign currency. By indirectly hedging its...
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