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In terms of currency denomination, describe how the firm prices

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?
  • Be sure to show all applicable work means showing tables and the math involved

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