Assume Harvey Noman, an Australian-based MNC, has an established subsidiary in Malaysia which produces computers at low cost. Thet sell the computers in Malaysia and export them to Australia and China. All the exports are invoiced and settled in the USD.

Suppose that in the next 6 months, the USD is NOT getting weaker. Discuss alternative currency exposure Harvey Noman might face. How can the company reduce the translation risk with a forward contract? Any problem with the use of the forwards?

(Note: your discussion needs to be in the context of Harvey Norman and the scenario provided, not generally)