UK-based MNCs invoicing in Asian currencies and incurring expenses in Asian currencies were probably less affected by weakness of Asian currencies than UK-based MNCs that invoice in Asian currencies but do not incur expenses in those currencies.

Question

Quizplus · Accepted Answer

If a UK-based MNC both invoices and incurs expenses in Asian currencies, the impact of currency fluctuations is mitigated as both revenue and costs are affected similarly, reducing the net effect on profitability.

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