Operating Exposure in Multinational Finance Quiz
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Questions and Answers

What is another name for operating exposure?

  • Economic exposure (correct)
  • Competitive exposure
  • Strategic exposure
  • Financial exposure

    • What is net operating exposure?

  • Is the gross finance exposure minus gross operating exposure
  • Is the net result of all cash outflows and inflows by currency (correct)
  • Is static in nature regardless of the macro-environment
  • Is the difference between the parent company and its subsidiaries exposures

    • Which type of international risk exposure measures the change in present value of a firm resulting from changes in future operating cash flows caused by unexpected change in exchange rates?

  • Translation exposure
  • Accounting exposure
  • Operating exposure (correct)
  • Transaction exposure

    • Is the following statement true or false: The goal of operating exposure analysis is to identify strategic operating techniques the firm might adopt to enhance value in the face of unanticipated exchange rate changes.

    <p>True</p> Signup and view all the answers

    Which of the following is not a synonym for operating exposure?

    <p>Financial exposure</p> Signup and view all the answers

    What is another name for operating exposure?

    <p>Economic exposure</p> Signup and view all the answers

    What is net operating exposure?

    <p>The net result of all cash outflows and inflows by currency</p> Signup and view all the answers

    What type of international risk exposure measures the change in present value of a firm resulting from changes in future operating cash flows caused by unexpected change in exchange rates?

    <p>Operating exposure</p> Signup and view all the answers

    True or False: The goal of operating exposure analysis is to identify strategic operating techniques the firm might adopt to enhance value in the face of unanticipated exchange rate changes.

    <p>True</p> Signup and view all the answers

    What does operating exposure analysis aim to identify?

    <p>Strategic operating techniques to enhance value in the face of unanticipated exchange rate changes</p> Signup and view all the answers

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