Final exam Term Paper Example | Topics and Well Written Essays - 750 words

Final exam - Term Paper Example AKTSIONERNY KOMMERCHESKI BANK BANK MOSKVY, OTKRYTOE AKTSIONERNOE OBSCHCHESTVO (a.k.a. BANK OF MOSCOW; a.k.a. JOINT STOCK COMMERCIAL BANK - BANK OF MOSCOW, OPEN JOINT STOCK COMPANY), 8/15 Korp. 3 ul. Rozhdestvenka, Moscow 107996, Russia; Bld 3 8/15, Rozhdestvenka St., Moscow 107996, Russia. 1. If revenues and costs are equally sensitive to exchange rate movements, MNCs may reduce their economic exposure by restructuring their operations to shift the sources of costs or revenues to other locations so that: 1. Coca Cola’s consolidated financial statements are presented in U.S. dollars. Management must translate revenues, income and expenses, as well as assets and liabilities, into U.S. dollars at exchange rates in effect during or at the end of each reporting period. Therefore, increases or decreases in the value of the U.S. dollar against other major currencies affect our net operating revenues, operating income and the value of balance sheet items denominated in foreign currencies. 1. The total currency impact on the operating income of Coca-Cola, including the effect of our hedging activities, was a decrease of approximately 4Â  percent and 5 percent in 2013 and 2012, respectively. 1. An MNC is attempting to reduce its economic exposure by financing a portion of its business with loans in the foreign currency. If the foreign currency weakens, the MNC will need ____ of the foreign currency to cover the loan payment, while the MNCs foreign currency revenues will convert to ____ dollars. 1. Coca-Cola sells concentrate to its bottling partner in Venezuela from outside the country. These sales are denominated in U.S. dollars. If the Venezuelan government devalues its currency or prevents dollars to leave the country Coca-Cola will lose value.. 1. Since Coca-Cola transacts in so many different currencies gains in some currencies are often offset