Even if translation exposure does not affect cash flows, it is a concern of many MNCs.

Question

Quizplus · Accepted Answer

Translation exposure refers to the risk of changes in exchange rates affecting the value of a company's assets, liabilities, and equity denominated in foreign currencies. While translation exposure does not directly impact cash flows, it can impact a company's financial statements and potentially affect investor perception and decisions. Therefore, it is a concern of many MNCs.

Even If Translation Exposure Does Not Affect Cash Flows, It