If an MNC Is Extremely Risk-Averse, It May Decide to Hedge

question 7

True/False

If an MNC is extremely risk-averse, it may decide to hedge even though its hedging analysis indicates that remaining unhedged will probably be less costly than hedging.
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Definitions:

Psychological Changes

Alterations or developments in emotional, cognitive, or behavioral characteristics over time due to various factors or life experiences.

Life Crises

Significant life events that require a substantial amount of adjustment and can lead to personal growth or distress.

Biological Perspective

A way of looking at psychological issues by examining the biological bases of behavior, including genetics, brain structures, and biochemical processes.

Extinguish

In psychological terms, to diminish or eliminate a conditioned response, often through repeated exposure to the conditioned stimulus without the unconditioned stimulus.