An MNC is attempting to reduce its economic exposure by financing a portion of its business with loans in the foreign currency. If the foreign currency weakens, the MNC will need ____ of the foreign currency to cover the loan payment, while the MNC's foreign currency revenues will convert to ____ dollars.

Question

​An MNC is attempting to reduce its economic exposure by financing a portion of its business with loans in the foreign currency. If the foreign currency weakens, the MNC will need ____ of the foreign currency to cover the loan payment, while the MNC's foreign currency revenues will convert to ____ dollars.

Quizplus · Accepted Answer

If the foreign currency weakens, the MNC will need less of the foreign currency to cover the loan payment, while the MNC's foreign currency revenues will convert to fewer dollars.

​An MNC Is Attempting to Reduce Its Economic Exposure by Financing

An MNC Is Attempting to Reduce Its Economic Exposure by Financing