U.S.-based MNCs invoicing in Asian currencies and incurring expenses in Asian currencies will probably be less affected by weakness in Asian currencies than U.S.-based MNCs that invoice in Asian currencies but do not incur expenses in those currencies.

Question

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When invoicing and incurring expenses in the same currency, a company is less exposed to currency fluctuations. Therefore, U.S.-based MNCs invoicing and incurring expenses in Asian currencies are less affected by weakness in those currencies compared to those invoicing in Asian currencies but incurring expenses in a different currency.

US-Based MNCs Invoicing in Asian Currencies and Incurring Expenses in Asian