Posted: January 10th, 2022
In terms of currency denomination, describe how the firm prices its revenues and costs.
For multinational enterprises (MNEs) with multiple foreign operations, consider any 2 of those operations and the contribution they are making to the parent firms profits.
What means do they use to hedge against exchange rate risk?
Using this information, what do you think would be the effect of increases or decreases in the dollar’s exchange value on the firm’s profitability?
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