An effective way for an MNC to assess its economic exposure is to review the firm's:

Question

Quizplus · Accepted Answer

The income statement will provide information on the MNC's revenue and expenses, which will help in assessing economic exposure. It will provide insights on how currency exchange rate movements affect the MNC's sales revenue, costs of goods sold, and operating expenses. This information will help the MNC in making informed decisions on how to hedge or manage currency risk. Liquidity, retained earnings, and level of stockholders' equity are important financial metrics as well, but they may not provide direct insights into economic exposure.

An Effective Way for an MNC to Assess Its Economic