As time passes by, McDonald’s in the US which is the headquarter company had a big amount of British pound-denominated cash inflows taken place below. First, the dividend distributed to the employers from the ownership of the subsidiary is part of British pound-denominated cash inflows. Second, it contains royalties from the British subsidiary as well. Third, principal and interest payments on the debt inside the company are considered as cash flows too. Then, using a cross-currency swap to create pound denominated cash outflows, the pound inflows which are based on asset might be off-set. Just like what has been discussed above, the type of the swap is paying pounds with receiving dollars. In addition, interest is paid by British pounds right now. On the cross-currency swap, the payment of principal efficiently repeats a long-term exposure in pounds at the end of the agreement. The situation is quite similar to the equity investment in McDonald’s of the British subsidiary.In conclusion, the cross-currency swap really provides useful measures for a company to hedge currency exposures on an operating or on-going basis. To all directions, it is effective enough to use the cross-currency swap model to handle with currency exposure problems. The market will witness how powerful and efficient the cross-currency swap is. Every company should take full use of financial instrument such as the cross-currency swap.