Consider an MNC Based in Canada with Manufacturing Activities in Japan.The

Multiple Choice

Consider an MNC based in Canada with manufacturing activities in Japan.The result of a change in the ¥/$ exchange rate on the assets and liabilities of the consolidated balance sheet is: Ignoring transaction exposure in the yen,the translation exposure will indicate a possible need for a "balance sheet hedge" of:

A) ¥200,000,000 more liabilities denominated in yen
B) ¥200,000,000 less assets denominated in yen
C) a or b
D) none of these