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Factors That Affect a Firm’s Translation

Factors That Affect a Firm- Translation 


1. Factors That Affect a Firm- Translation Exposure. What factors affect a firm- degree of
translation exposure? Explain how each factor influences translation exposure.

2. 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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13 Apr 2016

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    Factors That Affect a Firm’s Translation

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