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:

Independent Variables

In research, variables that are manipulated or changed to determine their effect on dependent variables.

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Systematic techniques used to plan, conduct, and analyze research to increase understanding of a topic or issue.

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