What is assessment as to firms degree of economic exposure

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Reference no: EM131325196

A US-headquartered MNC is assessing its transaction exposures. Its projected cash flows are as follows for the next year:

*Currency*	*Total inflow*	*Total outflow*	*Current* *exchange* *rate in US$*
Ruritanian doppels (RUD)	RUD 4 million	RUD 2 million	$ .15
British pounds (GBP)	GBP 2 million	GBP 1 million	$1.50
Batavian dracs (BTD)	BTD 3 million	BTD 4 million	$ .30

What is your assessment as to the firm's degree of economic exposure? Assume that the RUD and the BTD move in tandem against the US$.

Reference no: EM131325196

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