Question: Somerset Co. is a U.S. based MNC that obtains 40 percent of its foreign supplies from India.It also borrows India's currency (the rupee) from Indian

Somerset Co. is a U.S. based MNC that obtains 40 percent of its foreign supplies from India.It also borrows India's currency (the rupee) from Indian banks due to attractive interest rates and converts the rupee to dollars to support U.S. operations. It currently receives about 10 percent of its revenue from Indian customers. Its sales to Indian customers are denominated in rupees. Explain how Somerset Co. can reduce its economic exposure to exchange rate fluctuations.

purchase Indian goods

decrease its borrowed funds in India

decrease prices on U.S. gods

increase its borrowings in U.S.

attempt to increase sales in India

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