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Economic Exposure Assignment

Author:
February 24th, 2020

Economic exposure can affect:

Both MNCS and domestic firms.

MNCS only.

Only firms that engage in international business activities.

Purely domestic firms only

Question 16 (2.5 points)

Chicago Co. and Dallas Co. both import materials from Germany for their production. Total import values of the two companies are very similar. Dallas then sells its end products to the US consumers. Chicago also sells its end product in the US markets. However, Chicago can also export its products to several European countries. Which company has larger transaction exposure?

neither firm has any exposure.

Dallas Co.

the firms have about the same level of exposure.

Chicago Co. Get Finance homework help today

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