Translation exposure measures
A)the effect that an anticipated change in exchange rates will have on the consolidated financial reports of an MNC.
B)economic exposure.
C)the change in the value of a foreign subsidiaries assets and liabilities denominated in a foreign currency, as a result of exchange rate change fluctuations, when viewed from the perspective of the parent firm.
D)all of the above

Question

Quizplus · Accepted Answer

Translation exposure measures the impact of changes in exchange rates on a company's financial statements. Option A refers to transaction exposure, while option B refers to economic exposure. Option D encompasses all the given options, but C is the most specific and accurate option for translation exposure.

Translation Exposure Measures