Consider a U

question 44

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 "derivatives hedge" of

• A)short position in ¥200,000,000 currency futures.
• B)long position in ¥200,000,000 currency futures.
• C)either a or b
• D)none of the above

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Definitions:

Potential

An individual's or entity's inherent ability or capacity to develop, grow, and achieve success in the future.

Prosperous Economy

Characterizes an economic state with significant growth, wealth, and good living conditions for its populace.

Hierarchical Control

A method of management where decision-making authority is distributed on a graded scale from top-level management down to lower levels.

Organizational Design

The process of structuring an organization's roles, responsibilities, and systems to achieve its goals efficiently and effectively.