ame WACC: 1. Operating exposure is also called A) econonvie B) competitive C) strategic D) all of the above 2. For a U.S. firm that sells its products to China, a depreciation of U.S. dollar relative to Chinese sales in the China, other things cqual. yuan, should evestually result in A) more B) less 3. The strategy management undlertakes in response to unexpected changes in exchange rates depends to a large measure on their opinion about the price elasticity of demand. A) True B) False 4. An MNE has a contract for a relatively predictatle long-term inflow of Japanese yen that the firm This bedging strategy is sometimes referred to as A) risk-sharing C) matching D) diversification 5. AUS. timber products firm has a long tem contract to import anpeocessed logs from Canada. To avoid occasional and urpredictable changes in the exchange nate between the U.S dollar and the Canadian dollar, the firms agree to split between the two firms the impact of any exchange rate movement This type of agreerncnt is ,eferred to as- A) risk-sharing C) matching D) a natural hodge 6. A is the term used so describe a forcign currency agreement between two parties to exchange a given amount of one currency for another, and after a period of time, to give back the original amounts A) matched flow B) currency swap C) hack-to-back loan D) none of the above