Mne with multiple foreign operations

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Reference no: EM1375294

Select a United States multinational corporation. In terms of currency denomination, explain how the company prices its revenues and costs. For MNE's with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits. Using this information, what do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability? Be sure to show all applicable work.

Comments

An MNE is a multi-national enterprise, a company that has operations in more than one country. When a such a company prices its product and denominates its costs in terms of US dollars , there is no effect on its revenues or costs when exchange rates change. But when prices and costs are in terms of foreign currencies, an MNE's revenues and costs are affected by exchange rate changes. So select the company, describe its activities. State whether it prices its products in $ or a foreign currency. State whether it pays its suppliers and workers

Reference no: EM1375294

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