Question: b. Maple Leaf Co. is a Canadian based MNC that gets supplies from various foreign suppliers. Among that, 35% of its foreign supplies are from

b. Maple Leaf Co. is a Canadian based MNC that gets supplies from various foreign suppliers. Among that, 35% of its foreign supplies are from Vietnam. As a way to support Maple Leafs local operation, they borrow in Vietnamese Dong (WU) from Saigon Bank and converts Dong to Canadian Dollar (CAD). Their revenue from the Vietnamese customers is about 15% of its total revenue and sales are in the Dong. In addition, Maple Leaf Co. also obtains 20% of its supplies from a European manufacturer. Exchange rate uctuation is a concern to the company. The currency exchange of VND18,242.43 per CAD and 13.73 per CAD. Discuss how Maple Leaf Co. is able to reduce their economic exposure to the exchange rate fluctuation of both if its suppliers. (6 marks)

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