In general,translation exposure is more closely monitored when the foreign earnings of the subsidiaries are more likely to be remitted to the parent.

Question

Quizplus · Accepted Answer

Translation exposure refers to the risk that a company's financial statements and earnings may be impacted by changes in foreign currency exchange rates. This risk is more closely monitored when the earnings of foreign subsidiaries are likely to be remitted back to the parent company, as changes in currency exchange rates can lead to fluctuations in the value of those earnings when converted back into the parent company's home currency.

In General,translation Exposure Is More Closely Monitored When the Foreign