Which of the following firms is not exposed to translation exposure?

Category : Parenting
Which of the following firms is not exposed to translation exposure?by Roxy-Publishingon.Which of the following firms is not exposed to translation exposure?Question by John H: Which of the following firms is not exposed to translation exposure? Which of the following firms is not exposed to translation exposure? A) firm X, with a fully owned subsidiary that periodically remits earnings generated in Great Britain to the U.S.-based parent. B) firm Y, with a fully owned subsidiary that […]

Question by John H: Which of the following firms is not exposed to translation exposure?
Which of the following firms is not exposed to translation exposure?
A) firm X, with a fully owned subsidiary that periodically remits earnings generated in Great Britain
to the U.S.-based parent.
B) firm Y, with a fully owned subsidiary that periodically generates foreign losses in Sweden; the
parent covers at least some of these losses.
C) firm Z, with a fully owned subsidiary that generates substantial earnings in Germany; the
subsidiary never remits earnings but reinvests them in Germany.
D) all of these firms are exposed to translation exposure.

Best answer:

Answer by Caliban
D. since all, will at some point, deal with exchange rate changes. In all cases, earnings of all subsidiaries affect the home firm’s profitability statement.

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