4. Translation Exposure Subsidiary managers should not held responsible for translation effects, but we don’t think Xerox discounts boost financial results for unit performance measurement if currency goes in favorable direction for foreign operation is good way evaluating performance of subsidiaries. We suggest Xerox compare budgets and actual results using same metric and isolate inflation-related effects through variance analysis. It can avoid unfair rewards or penalties and it is easier method to understand and carry out than current practice.