Consider a U Ignoring Transaction Exposure in the Yen,the Translation Exposure Will Indicate

question 29

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 $$\begin{array} { l l l } \text { Exposed assets } & \text { ¥ } & 700,000,000 \\\text { Exposed liabilities } & \text { ¥ } & 500,000,000\end{array}$$ 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)¥200,000,000 more liabilities denominated in yen or ¥200,000,000 less assets denominated in yen.
• D)none of the options

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Definitions:

Job Rotation

The process of moving employees through a variety of jobs to increase interest and motivation.

Stagnation

A period of little or no growth or development within a business, economy, or any system.

Safety

Refers to the condition of being protected from or unlikely to cause danger, risk, or injury in the workplace or public environments.

Realistic Job Preview

This is a strategy used by organizations to provide potential employees with a true depiction of what working in a particular role or company is like, including both positive and negative aspects.