41 Evaluating exchange rate movement Find the homepage of a large multinational by referring to the lists on the site http://www.forbes.com and find the latest annual report  including all the accounting policies.

a Review the annual report of your choice. Look for any comments in the report that describe the MNC’s hedging of transaction exposure. Summarize the MNC’s hedging of transaction exposure based on the comments in the annual report

(an easy way to find the right section is to use the search function using the word ‘risk’).

b The following website provides exchange rates:

http://www.oanda.com, select the FXhistory option. Based on the exposure of the MNC you assessed in part (a), determine whether the exchange rate movements of whatever currency

(or currencies) the MNC is exposed to moved in a favourable or unfavourable direction over the last few months.