When a Multinational Firm Has One or More Foreign Subsidiaries

question 7

Multiple Choice

When a multinational firm has one or more foreign subsidiaries with assets and liabilities denominated in a foreign currency, it faces ____ exposure.

• A) economic
• B) operating
• C) translation
• D) transaction

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Definitions:

Families Earned

Refers to the income generated by household members through employment or other sources of earnings.

Income

Financial earnings received by an individual or entity, typically measured over a set period and derived from work, investments, or other sources.

Perfect Equality Line

In the context of income distribution, a theoretical line indicating equal income or wealth distribution among all participants.

Points

In various contexts, a measurement or scoring method used to quantify achievements, progress, or certain financial transactions, such as credit card rewards.