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14. Translation exposure a. Is the potential gain or loss in near term cash ows caused by change in exchange rate. . Is the potential
14. Translation exposure a. Is the potential gain or loss in near term cash ows caused by change in exchange rate. . Is the potential gain or loss in long term cash flows caused by change in exchange rate. b c. Has no inuence on cash flow d. Has inuence on cash flow 15. A US. based MNC can be subject to transaction exposure if the corporation: a. Buys supplies or sells goods on open account b. Borrows or lends c. Has underperformed foreign exchange forward contract d. Has assets and liabilities denominated in :1; e. All the above 16A MNC can ensure a full protection against translation exposure if uses: a. money market hedge. b. forward hedge. c. futures hedge. cl. none of the above
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