Use its annual report of Pepsi and other information (INCLUDING ONLINE SOURCES) to present a report which addresses the following questions. If the question is not directly answered by the annual report or other sources, provide the related information that is disclosed and use your opinion to answer the question.

a.Explain how the Pepsi is subject to transaction, economic and translation exposure.

b.What are the techniques used by the Pepsi to hedge its transaction, economic and translation exposures.Illustrate using information and data (including figures) from the annual report where available and applicable.(Note that the Pepsi may also use non-derivative methods to manage their exposure.) Do not generalize.

c.How were the Pepsi's cash flows recently affected by exchange rate movements according to its annual report?(Note- cash flows would be affected by transaction and economic exposure). Review the foreign currency transaction gains and losses and the foreign currency transaction unrealized gains and losses on the income statement, the equity account and the disclosures, for this information.

d.How did the translation exposure affect the Pepsi's consolidated earnings? To answer this question, kindly review the annual report particularly the translated gains and losses as well as the unrealized translation gains and losses.

Identify the revenue and cost benefits of Pepsi's direct foreign investment in some countries.Is Pepsi involved in any emerging markets?What favourable characteristics do they have for DFI for the MNC?

b. Do you think that the economic growth levels of the countries where Pepsi does business are highly correlated?Do you think that the performance levels of Pepsi in each country are highly correlated?

LINK FOR PEPSI 2019 FINANCIAL STATEMENT:

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.pepsico.com/docs/album/annual-reports/pepsico-inc-2019-annual-report.pdf%3Fsfvrsn%3Dea470b5_2&ved=2ahUKEwjnyqKO4PvqAhWTYDUKHZgjAUcQFjAAegQIAxAB&usg=AOvVaw0JTBtFR8M7wY8Hb5OHyY2X