Question: A U. S.- based MNC FP sells computers in India. Annual sales are 25,000 units at a price of INR 40,000 each. INR is currently

A U. S.- based MNC FP sells computers in India. Annual sales are 25,000 units at a price of INR 40,000 each. INR is currently at USDINR = 60. Because of market shocks, the INR depreciates to USDINR = 64. Consequently, the firm is forced to raise prices to INR 42,000 per computer. Examine the exposure faced by this firm assuming that units do not change.

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