1. Coca-Cola, a well-known U.S. multinational company, derives about threequarters of its revenue from overseas markets. It is thus highly likely that the company is exposed to currency risks. Investigate the company’s exchange risk management policies and practices from its Annual Report (10-K) filed with the Securities and Exchange Commission (SEC) of the United States, especially the

“Financial Risk Management” section, which are available from the following website: www.sec.gov/edgar.shtml.

How would you evaluate Coca-Cola’s approach to exchange risk management?