To reduce economic exposure when a foreign currency has a greater impact on cash inflows, an MNC could reduce its level of foreign sales, increase its foreign supply orders, or restructure debt to increase debt payments in the foreign currency.

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These are all strategies an MNC could use to reduce its economic exposure to a foreign currency that has a greater impact on its cash inflows. By reducing foreign sales, the MNC is relying less on cash inflows denominated in the foreign currency, while increasing supply orders can create more cash outflows denominated in that currency. Restructuring debt to increase debt payments in the foreign currency can also reduce economic exposure by reducing the impact of currency fluctuations on cash flows.

To Reduce Economic Exposure When a Foreign Currency Has a Greater