1. Where does translation exposure occur? Is it in the MNC's home country, or in its host country where it has a subsidiary? Explain and give an example.

2. In measuring exposure to exchange rate fluctuations, name and describe the technique that can be used to separately consider how sales and expense categories are affected by various exchange rate scenarios.

3. What would be the appropriate strategy for an MNC to assess its short-term exposure to exchange rate fluctuations, and what explains the short-term focus?

4. Should Investors care about MNC's translation Exposure?