question archive 1) What is an example of translation exposure for a US firm? 2
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1) What is an example of translation exposure for a US firm?
2. What is not listed as a strategy for a company that has more cash inflows than outflows in a foreign currency to reduce its economic exposure?
3. A firm sells product in US. It works with Chinese manufacturer, and imported product are in dollars. Competitor is Mexico. This firm is subject to ___ exposure
4. What type of firm is not exposed to translation exposure?
Answer:
1.
Decrease in Swiss Franc’s value decreases the consolidated income of US firm
2.
Increasing foreign sales
3.
Economic
4.
A US firm with a fully owned subsidiary