Diz Co Is a U

question 94

Multiple Choice

Diz Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Swiss francs. These two currencies are highly correlated in their movements against the dollar. Yanta Co. is a U.S.-based MNC that has the same level of net cash flows in these currencies as Diz Co. except that its euros represent net cash outflows. Which firm has a higher exposure to exchange rate risk?

• A) Diz Co.
• B) Yanta Co.
• C) the firms have about the same level of exposure.
• D) neither firm has any exposure.

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Definitions:

Supervising

Involves overseeing and directing the work and activities of others, ensuring tasks are completed effectively and efficiently.

Homogeneous

Consisting of parts or elements that are all of the same kind; not heterogeneous.

Relationship

A connection, association, or involvement between individuals, groups, or entities, characterized by various forms of interaction.

Communication Style

The characteristic way in which an individual communicates with others, often defined by factors such as directness, emotional expressiveness, and the use of verbal or non-verbal cues.