Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure?
Review the annual reports of three MNCs found at www.reportgallery.com.
1. Is it obvious from their annual reports whether these companies are hedging their economic, transaction, or translation exposure?
2. Which currencies have these companies borrowed in besides the U.S. dollar? Do these foreign currency borrowings offset any obvious economic exposures they have in those currencies (e.g., because they have a subsidiary located in that country)?
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(Shapiro 403)
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