An MNC can avoid translation exposure if its foreign subsidiaries do not remit their earnings to the parent.

Name: An MNC can avoid translation exposure if its foreign subsidiaries do not remit their earnings to the parent.
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Question

Quizplus · Accepted Answer

Translation exposure, also known as accounting exposure, arises from the need to convert foreign currencies into the parent company's currency for reporting purposes. It occurs regardless of whether earnings are remitted to the parent company.

An MNC Can Avoid Translation Exposure If Its Foreign Subsidiaries