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.
Present your findings as a Word document of 7–10 pages formatted in APA style. Include 5–7 academic, peer-reviewed references that are relevant to and support the deliverable.
Submitting your assignment in APA format means, at a minimum, you will need the following:
- Title page: Remember the running head AND THE TITLE IN ALL CAPITALS.
- Abstract: This is a summary of your paper—not an introduction. Begin writing in third-person voice.
- Body: The body of your paper begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3–4 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
- Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.