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:

Relative Gain

A concept in international relations that refers to the comparative advantage one party achieves over another, especially in cooperative or competitive scenarios.

Might Makes Right

A principle suggesting that those who are powerful or have the ability to enforce their will can define what is considered morally right or acceptable.

Social Dominance Orientation

A personal attitude that places a value on hierarchies within societies, preferring inequality among social groups.

Social Equality

A state of affairs in which all individuals within a society have equal rights, opportunities, and treatment, regardless of personal traits or socioeconomic status.