A US-Based Multinational Corporation Has 100% Owned Subsidiary in Argentina

question 111

Multiple Choice

A U.S.-based multinational corporation has 100% owned subsidiary in Argentina.The subsidiary operates only domestically,that is,all transactions occur within Argentina.Therefore,the U.S.multinational corporation

• A) is exposed to translation risk only.
• B) is not exposed to exchange rate risk because the subsidiary operates 100% domestically.
• C) is exposed to both translation exposure and economic exposure.
• D) is most concerned with transactions exposure.

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Definitions:

Bound Control

A user interface element in software development that is directly connected to a data source, displaying and modifying data within a database.

Text Box

A graphical control element within software applications where users can input text data.

Text Box Control

An element in graphical user interfaces that lets users input or edit text.

Detail Section

A specific area in reporting or forms design software, used to display the main body of information or individual records in detail.