Economics

Economics

Economics for the Global Manager

Select a U.S. multinational company, and respond to the following questions:
• In terms of currency denomination, describe how the firm prices its revenues and costs.
• For multinational enterprises (MNEs) with multiple foreign operations, consider any 2 of those operations and the contribution they are making to the parent firm’s profits.
• What means do they use to hedge against exchange rate risk?
• Using this information, what do you think would be the effect of increases or decreases in the dollar’s exchange value on the firm’s profitability?