If Positions in a Specific Currency Among an MNC's Subsidiaries

question 23

True/False

If positions in a specific currency among an MNC's subsidiaries offset each other, the decision by one subsidiary to hedge its position in that currency would increase the MNC's overall exposure.

---

Definitions:

Speech Production

The process by which thoughts are translated into speech, involving several areas of the brain to produce and articulate words.

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain associated with language processing, speech production, and comprehension.

Muscle Movements

The action of muscles contracting and relaxing, which results in movement of body parts or the entire body.

Speech

Speech is the verbal expression of thoughts, feelings, or information, made possible through the coordinated use of the vocal tract, including the tongue, throat, and lips.