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

question 26

Multiple Choice

An MNE has a contract for a relatively predictable long-term inflow of Japanese yen that the firm chooses to hedge by paying for imports from Canada in Japanese yen. This hedging strategy is known as:

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

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Definitions:

General Cognitive Ability

A measure of an individual's overall mental capacity, including memory, attention, and the ability to understand and process information.

Performance

The action of performing a task or function, commonly used to evaluate how well an activity is executed or a goal is achieved.

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The ability to recognize, understand, and manage one's own emotions and those of others.

Job Performance

The level at which an individual executes their job responsibilities and tasks, often measured against pre-defined standards.