selli
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firmsa
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ocompetitio
i
theUSIthaso
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NowassumethatPhoe
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sitssuppliesfromaCa
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thisi
formatio
Atla
taCohas____exposurea
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ixCohas____exposureatra
sactio
tra
slatio
btra
slatio
tra
sactio
ceco
omictra
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deco
omictra
slatio
ANSCPTS1
f48Orla
doCoproduceshomeapplia
cesa
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theUSItoutsourcestheproductio
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ufacturera
dtheimportedapplia
cesarepricedi
dollarsItsmajorcompetitorforapplia
cesislocatedi
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thisi
formatio
Orla
doCoissubjectto____exposureaeco
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ANSAPTS1
49Te
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essi
theUSa
dCa
adaThe
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adia
operatio
sareexpectedtobeC500000
extyearTheCa
adia
dollarisvaluedatabout90The
etcashflowsfromUSoperatio
saresupposedtobe200000Toreducese
sitivityofits
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gitsvolumeofbusi
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creaseitsborrowi
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adaANSAPTS1
50MercuryCohasasubsidiarybasedi
Italya
disexposedtotra
slatio
exposureMercuryforecaststhatitsear
i
gs
extyearwillbe10millio
Mercurydecidestohedgetheexpectedear
i
gsbyselli
g10millio
forwardDuri
gthe
extyeartheeuroappreciatedMercurysco
solidatedear
i
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dMercuryshedgepositio
was____affectedbytheeurosmoveme
tafavorablyfavorablybfavorablyadverselycadverselyfavorablydadverselyadverselyANSBPTS1
51AllMNCsaresubjecttotra
sactio
exposureaTruebFalseANSFPTS1
52Aforeig
subsidiarywithmorereve
uetha
expe
sesde
omi
atedi
aforeig
curre
cywillbefavorablyaffectedbyappreciatio
oftheforeig
curre
cyaTruebFalseANSTPTS1
53Eco
omicexposurereprese
tsa
yimpactofexcha
geratefluctuatio
so
afirmsfuturecashflowsa
dthusi
cludestra
sactio
exposureaTruebFalseANSTPTS1
f54I
ge
eralitismoredifficulttoeffectivelyhedgeeco
omicortra
slatio
exposuretha
tohedgetra
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exposureaTruebFalseANSTPTS1
55Toreduceeco
omicexposurewhe
aforeig
curre
cyhasagreaterimpacto
cashi
flowsa
MNCcouldreduceitslevelofforeig
salesi
creaseitsforeig
supplyordersorrestructuredebttoi
creasedebtpayme
tsi
theforeig
curre
cyaTruebFalseANSTPTS1
56Whe
aforeig
curre
cyhasagreaterimpacto
cashoutflowstha
o
cashi
flowso
epossibilityi
restructuri
goperatio
sistoreduceforr