Thornton Corp

question 42

Multiple Choice

Thornton Corp. is based in the U.S. and has no foreign subsidiaries. It has extensive liabilities denominated in Indian rupees resulting from imports from India. However, Thornton's revenues are denominated solely in U.S. dollars. Which of the following is probably not true?

• A)Thornton would benefit from a depreciation of the Indian rupee.
• B)Thornton has at least some transaction exposure.
• C)Thornton has at least some economic exposure.
• D)Thornton has at least some translation exposure.
• E)All of the above are true.