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Select a U.S. multinational company, and respond to the following questions: In terms of currency denomination, describe how the firm prices its revenues and costs.
Select a U.S. multinational company, and respond to the following questions:
- In terms of currency denomination, describe how the firm prices its revenues and costs.
- For multinational enterprises (MNEs) with multiple foreign operations, consider any 2 of those operations and the contribution they are making to the parent firm's profits.
- What means do they use to hedge against exchange rate risk?
- Using this information, what do you think would be the effect of increases or decreases in the dollars exchange value on the firms profitability?
- Be sure to show all applicable work.
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