Healthtech Co. is a U.S.‑based multinational company with net cash inflows of euros and net cash inflows of Swiss francs. These two curren­cies are highly positively correlated in their movements against the dollar.  

Yanta Co. is a U.S.‑based multinational company that has the same level of net cash flows in these currencies as Healthtech Co. except that Yanta has net cash outflows of euros, and net cash inflows of Swiss francs. 

What firm has a higher exposure to exchange rate risk and why?

Answer rating: 100% (QA)

Yanta Co has ... View the full answer