U.S.-based MNCs invoicing in Asian currencies and incurring expenses in Asian currencies were probably less affected by the weakness of Asian currencies than U.S.-based MNCs that invoice in Asian currencies but do not incur expenses in those currencies.

Question

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U.S.-based MNCs that incur expenses in Asian currencies can offset the effects of currency weakness by using their Asian currency earnings to pay for those expenses. Therefore, they are less affected by the weakness of Asian currencies compared to U.S.-based MNCs that invoice in Asian currencies but do not incur expenses in those currencies.

US-Based MNCs Invoicing in Asian Currencies and Incurring Expenses in Asian