Illustrate what does it use to hedge against exchange rate

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Q. Select a U.S. multinational company. In terms of currency denomination, discuss Explain how firm prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and contribution it is making to parent firm's profits. Illustrate what means does it use to hedge against exchange rate risk? Using this information, illustrate what do you think would be effect of increases/decreases in dollar's exchange value on firm's profitability? Be sure to explain how all applicable work.

 

 

Reference no: EM1371372

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