"1)Hudson Co., a U.S firm has a subsidiary in Mexico, where political risk has recently increased. Hudson’s best guess of its future peso cash flows to be received has not changed. However, its valuation has declined as a result of the increase in political risk. Explain.,,2)Would the agency problem be more pronounced for Berkely Corp., which has its parent company make most major decisions for its foreign subsidiaries, or Oakland Corp., which uses a decentralized approach?,,3)McCanna Corp., a U.S firm, has a French subsidiary that produces wine and exports to various Europeon countries. All of the countries where it sells its wine use the euro as their currency, which is the same currency used in France. Is McCanna Corp. exposed to exchange rate risk?" ,
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