An MNE Has a Contract for a Relatively Predictable Long-Term

question 2

Multiple Choice

An MNE has a contract for a relatively predictable long-term inflow of Japanese yen that the firm chooses to hedge by seeking out potential suppliers in Japan. This hedging strategy is referred to as:

• A) a natural hedge.
• B) currency-switching.
• C) matching.
• D) diversification.

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Definitions:

Episodic Memory

A subtype of long-term memory that involves the recollection of specific events, situations, and experiences from one's past.

Iconic

Relating to or of the nature of an icon, often used to describe visual information that is stored in memory for a short period.

Semantic

Semantic pertains to the study of meaning, interpretation, and the relationship between signifiers like words, phrases, signs, and symbols and what they represent.

Short-Term

Pertaining to or lasting a brief period of time, often used to describe memory or objectives that are near-term.