If Revenues and Costs Are Equally Sensitive to Exchange Rate

question 15

Multiple Choice

If revenues and costs are equally sensitive to exchange rate movements, MNCs may reduce their economic exposure by restructuring their operations to shift the sources of costs or revenues to other locations so that:

• A)cash inflows exceed cash outflows in each foreign currency.
• B)cash outflows exceed cash inflows in each foreign currency.
• C)cash inflows match cash outflows in each foreign currency.
• D)none of the above

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An abbreviation for the Affordable Care Act, a comprehensive healthcare reform law enacted in March 2010 aimed at expanding healthcare coverage, reducing costs, and improving healthcare quality.

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