1)Generally, MNCs with fewer exposed assets than exposed liabilities in the foreign currency will be:

A.Favorably affected by a stronger foreign currency

B.Favorably affected by a weaker foreign currency

C.Will not be affected by a stronger foreign currency

D.Will not be affected by a weaker foreign currency

2)The Syracuse Manhole Cover Company (ASC) exports its covers to Italy and Germany. It sells its products in euros and enters foreign markets through wholesalers. It therefore enters sales contracts with each customer. Which of the statements below is true?

A.The US $ value of its sales is unaffected by changes in the (dollar/euro) exchange rate

B.The US $ value of its sales will increase if the euro depreciates

C.The US $ value of its sales will decrease if the euro depreciates

D.The US $ value of its sales will decrease if the euro appreciates

E.All of the above