The following table shows a breakdown of sales and costs for four Swiss companies. Swatch produces watches; Lindt & Sprüngli, chocolate; Nestlé, food; and Roche, pharmaceuticals. Discuss the currency exposure that comes from each of their operations. Which company do you think would be most affected by an increase in the value of the dollar? What about an increase in the value of the euro?

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Percentage of total sales or costs in the United States and the Euro area Euro-area costs Euro-area U.S. sales U.S. costs sales Swatch Group Lindt & Sprüngli Nestlé Roche 8% 23 27 45 2% 14 27 35 25% 10% 58 27 35 67 27 10