Your ﬁrm has subsidiaries throughout the world. Due to the recent depreciation of the dollar against
most foreign currencies, the dollar value of your foreign sales has declined as reﬂected on the
parent's ﬁnancial statements, even though sales growth is strong. The following was an example of
a short run exchange rate risk.

Question

Quizplus · Accepted Answer

The Answer of Your ﬁrm has subsidiaries throughout the world. Due to the recent depreciation of the dollar against
most foreign currencies, the dollar value of your foreign sales has declined as reﬂected on the
parent's ﬁnancial statements, even though sales growth is strong. The following was an example of
a short run exchange rate risk.

Your ﬁRm Has Subsidiaries Throughout the World