Briefly Explain How a U

question 62

Essay

Briefly explain how a U.S.company that exports to Europe can hedge against exchange rate risk.

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Definitions:

Small Intestine

The small intestine is a long, coiled tube in the digestive system where most of the digestion and absorption of nutrients occurs.

Gastrin

A hormone secreted by the stomach that stimulates secretion of gastric acid.

Stomach

A muscular hollow organ in the gastrointestinal tract of humans and many animals, where digestion of proteins begins.

Liver

The liver is a vital organ that plays a central role in metabolic processes including detoxification, producing plasma proteins, and secreting bile.