An MNC expects to sell fixed assets it utilizes in Europe in the distant future. In order to hedge the sale of these assets in the distant future, the MNC could create a(n) ____ that ____ the expected value of the assets in the future.
A) asset; matches
B) asset; exceeds
C) liability; matches
D) liability; is less than
Correct Answer:
Verified
Q24: U.S.-based MNCs invoicing in Asian currencies and
Q25: _ is (are) not a limitation of
Q26: An MNC is attempting to reduce its
Q27: To hedge translation exposure, MNCs could _
Q28: In general, it is more difficult to
Q30: All MNCs are subject to translation exposure.
Q31: _ exposure occurs when an MNC translates
Q32: Cierra, Inc. is attempting to assess its
Q33: Assume that an MNC's cash flows are
Q34: The translation gain (or loss) is simply
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents