CHAPTER 10 QUIZ 10

CHAPTER 10 QUIZ 10
 Translation Exposure. Consider a period in which the U.S. dollar weakens against the euro. How
will this affect the reported earnings of a U.S.-based MNC with European subsidiaries? Consider a
period in which the U.S. dollar strengthens against most foreign currencies. How will this affect
the reported earnings of a U.S.-based MNC with subsidiaries all over the world?

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