Slide 14 of
32
Slides developed by Jeff Madura, with
additions and enhancements by Tim Richardson
Transaction Exposure
uAffects
exposure to net cash flow
–consolidates
subsidiaries’ cash in/outflows
–e.g.,
minimal exposure in Mexican peso if
FSubsidiary A has net
inflow of PS9,000,000
FSubsidiary B has net
outflow of PS8,700,000
MNC net flow = PS300,000