Economic exposure to exchange rate fluctuations

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ABC Corp. is a U.S.-based MNC that has a large government contract with France. The contract will continue for several years and generate more than half of ABC's total sales volume. The French government pays ABC in French Frank. About 10 percent of ABC's oper­ating expenses are in French Frank; all other expenses are in U.S. dollars. Explain how ABC Corp. can reduce its economic exposure to exchange rate fluctuations.

Reference no: EM133112842

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