____ is (are) not a determinant of translation exposure.
A) The MNC's degree of foreign involvement
B) The locations of foreign subsidiaries
C) The local (domestic) earnings of the MNC
D) The accounting methods used

Question

​____ is (are) not a determinant of translation exposure.
A) ​The MNC's degree of foreign involvement
B) ​The locations of foreign subsidiaries
C) ​The local (domestic) earnings of the MNC
D) ​The accounting methods used

Quizplus · Accepted Answer

Translation exposure, also known as accounting exposure, refers to the impact of currency exchange rate changes on the reported financial statements of a company. It primarily concerns the conversion of foreign operations into the parent company's reporting currency. The local (domestic) earnings of the MNC are not directly affected by exchange rate changes in the context of translation exposure, as it pertains to foreign operations and their conversion into the parent company's currency for reporting purposes.

​____ Is (Are) Not a Determinant of Translation Exposure

____ Is (Are) Not a Determinant of Translation Exposure