Economic Exposure Assignment
February 24th, 2020
Economic exposure can affect:
Both MNCS and domestic firms.
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.
the firms have about the same level of exposure.
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