文档介绍：International Corporate Finance
11th Edition
by Jeff Madura
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10 Measuring Exposure to Exchange Rate Fluctuations
Chapter Objectives
Discuss the relevance of an MNC’s exposure to
exchange rate risk
Explain how transaction exposure can be measured
Explain how economic exposure can be measured
Explain how translation exposure can be measured
2 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Relevance of Exchange Rate Risk
Exchange rates are very volatile.
The dollar value of an MNC’s future payables or
receivables in a foreign currency can change
substantially in response to exchange rate movements.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Exhibit Amount of Dollars Needed to Obtain
Imports (transaction value is 1 million euros)
4