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What methods of operating exposure management

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Firm A is a US firm that operates in France, Italy, Belgium, Netherlands, Austria and Spain. Firm B is also a US firm that operates in India, China, Brazil, Mexico, Germany, and Australia. Assume that both firms are in the same industry and that their financial characteristics (size, leverage, profitability etc.) are not significantly different. Which of the two companies do you believe will be more likely to experience a more significant operating exposure to currency risk? What methods of operating exposure management can you recommend as better suited for Firm A and for Firm B?

Reference no: EM132544238

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