About-transaction-translation or economic

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Pick a publicly listed MNC that has at least 20 per cent revenues from outside USA. From their latest annual report answer the following.

1. What type of foreign currency exposure are they most worried about: transaction, translation or economic?

2. How do they hedge foreign currency exposure? Futures / Forwards / Money market hedges/ Swaps / Options?

3. How do they evaluate their hedging performance? Explain with numbers from the financial accounts.

 

4. Do they talk about losses from translation exposure, if they have Foreign subsidiaries?

Reference no: EM13937351

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