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    Translation exposure

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    I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand these questions:

    Would a more established MNC or a less established MNC be better able to effectively hedge its given level of translation exposure? Why?

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    https://brainmass.com/business/multinational-corporations/translation-exposure-global-risk-management-255518

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    Would a more established MNC or a less established MNC be better able to effectively hedge its given level of translation exposure? Why?

    Translation exposure occurs when the financial statements of subsidiaries are consolidated with the parent company. The subsidiaries usually would have the local currency of the country in which they operate as their functional currency. In consolidation, these accounts in the local ...

    Solution Summary

    The solution explains which MNC - established or less established is in a better position to hedge translation exposure.

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