Q1. In terms of currency denomination, describe how Proctor & Gamble prices its revenue and costs. Consider any two of Proctor & Gamble's operations and the contribution they are making to profit. What means do they use to hedge against exchange rate risk? What do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability?
Q2. Suppose the legislature enacts minimum wage legislation in order to provide workers with a "living wage." If the minimum wage is raised to $13, Explain how many workers will the firm choose to employ?