Consider Franco Co, the parent of a US-based multinational corporation (MNC) that uses forecasted exchange rates to assist with various business functions.

Franco Co has a foreign subsidiary in Japan and must decide whether the subsidiary will remit its profits or reinvest those funds. Franco Co uses a forecasted value of the yen to make this decision.

This is an example of using exchange rate forecasting to assist with [short-term investment, financing in foreign currency, hedging, capital budgeting, OR earning assessment] decisions, with the goal of improving the value of the MNC via influencing the [the cost of capital OR dollar value of foreign cash flows].