A limitation of hedging translation exposure is that translation losses are not tax deductible, whereas gains on forward contracts used to hedge translation exposure are taxed.
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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
Q35: U.S. firms can attempt to hedge their
Q37: As opposed to transaction exposure, managing economic
Q38: Long-term forward contracts are a possible way
Q39: A foreign subsidiary with more susceptible expenses
Q40: If revenues and costs are equally sensitive
Q41: Tennessee Co. conducts business in the U.S.
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