Chapter 5, 10, 11 & 12 Concepts -20 marks (required) a. Explain how the MNC is subject to transaction, economic and translation exposure. There will be penalty for copying and pasting information from the annual report. What are the techniques used by the MNC to hedge its transaction, economic and translation exposures. Illustrate using information and data (including gures) from the annual report where available and applicable. (Note that the MNC may also use non-derivative methods to manage their exposure.) Do not generalize. How were the MNC's cash ows recently affected by exchange rate movements according to its annual report? (N ote- cash ows would be affected by transaction and economic exposure). Review the foreign currency transaction gains and losses and the foreign currency transaction unrealized gains and losses on the income statement, the equity account and the disclosures, for this information. How did the translation exposure affect the MNC's consolidated earnings? To answer this question, kindly review the annual report particularly the translated gains and losses as well as the unrealized translation gains and losses