Consider a U

question 4

Multiple Choice

Consider a U.S.-based MNC with manufacturing activities in Japan.The result of a change in the ¥-$ exchange rate on the assets and liabilities of the consolidated balance sheet is: Ignoring transaction exposure in the yen,the translation exposure will indicate a possible need for a "balance sheet hedge" of

• A)¥200,000,000 more liabilities denominated in yen.
• B)¥200,000,000 less assets denominated in yen.
• C)both a) or b)
• D)none of the above

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Definitions:

Compensation

Payment or reward given for services rendered or damages incurred.

Tortfeasor

A person or party that has committed a tort, which is a wrongful act leading to legal liability.

Intentional Tort

An Intentional Tort is a civil wrong resulting from an intentional act on the part of the tortfeasor (wrongdoer) that causes harm to another.

Felony

A serious crime, typically one punishable by imprisonment for more than one year or by death.