Jacko Co is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Sunland francs. These two currencies are highly negatively correlated in their movements against the dollar. Kriner Co is a U.S.-based MNC that has the same exposure as Jacko Co in these currencies, except that its Sunland francs represent cash outflows. Which firm has a high exposure to exchange rate risk?
a
Jacko Co.
b. Kriner Co.
c. The firms have about the same level of exposure.
d. Neither firm has any exposure.
b
Business
You might also like to view...
Lower-of-cost-or-market
a. is most conservative if applied to the total inventory. b. is most conservative if applied to major categories of inventory. c. is most conservative if applied to individual items of inventory. d. must be applied to major categories for taxes.
Business
When planning a presentation to seek collaboration, how should information be organized?
A) By comparison B) By importance C) Based on conclusions and recommendations D) Using broad categories E) Based on the sequence of events
Business