Reported earnings of u.s. based mnc with subsidiaries


Task: Translation Exposure.

Q1. Consider a period in which the U.S. dollar weakens against the euro. How will this affect the reported earnings of a U.S.-based MNC with European subsidiaries?

Q2. Consider a period in which the U.S. dollar strengthens against most foreign currencies. How will this affect the reported earnings of a U.S.-based MNC with subsidiaries all over the world?

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Finance Basics: Reported earnings of u.s. based mnc with subsidiaries
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