Question:Chapter 11 - Translation Exposure

Please provide your discussion for the following questions on 14^th edition.

12, 13, 14, & 15

12.Translation Exposure Management.What are the primary options firms have to manage translation exposure?

13.Accounting or Cash Flow.If a U.S.-based multinational company generates more than 80% of its profits (earnings) outside the U.S. in the euro zone and Japan, and both the euro and the yen fall significantly in value versus the dollar as occurred in the second half of 2014, is the impact on the firm only accounting or does it alter cash flow, or both?

14.Balance Sheet Hedge Justification.When is a balance sheet hedge justified?

15.Realization and Recognition.When would a multinational firm, if ever, realize and recognize the cumulative translation losses recorded over time associated with a subsidiary?