Questions from Multinational Business Finance

Q: What are the primary options firms have to manage translation exposure?

What are the primary options firms have to manage translation exposure?

Q: If a U.S.-based multinational company generates more than

If a U.S.-based multinational company generates more than 80% of its profits (earnings) outside the U.S. in the euro zone and Japan, and both the euro and the yen fall significantly in value versus th...

Q: When is a balance sheet hedge justified?

When is a balance sheet hedge justified?

Q: Have studies found that more or less government involvement in a prospective

Have studies found that more or less government involvement in a prospective project is helpful in the success of the business?

Q: When would a multinational firm, if ever, realize and recognize

When would a multinational firm, if ever, realize and recognize the cumulative translation losses recorded over time associated with a subsidiary?

Q: How does translation alter the global tax liabilities of a firm?

How does translation alter the global tax liabilities of a firm? If a multinational firm's consolidated earnings increase as a result of consolidation and translation, what is the impact on tax liabil...

Q: What activity gives rise to translation exposure?

What activity gives rise to translation exposure?

Q: In the context of preparing consolidated financial statements, are the words

In the context of preparing consolidated financial statements, are the words translate and convert synonyms?

Q: What is the difference between a self-sustaining foreign subsidiary and

What is the difference between a self-sustaining foreign subsidiary and an integrated foreign subsidiary?

Q: What is a functional currency? What do you think a "

What is a functional currency? What do you think a "non-functional currency" would be?