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When a U.S.-based MNC has a subsidiary in Mexico that needs financing, the MNC's exposure to exchange rate risk can be minimized if: the parent

When a U.S.-based MNC has a subsidiary in Mexico that needs financing, the MNC's exposure to exchange rate risk can be minimized if:

the parent issues dollar-denominated equity and provides the proceeds to the subsidiary.

the parent provides its retained earnings to the Mexican subsidiary.

the subsidiary obtains a dollar-denominated loan from a financial institution.

the subsidiary obtains a peso-denominated loan from a financial institution.

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