The Hedging Principle Is Used to Address the Issue of How

question 135

True/False

The hedging principle is used to address the issue of how much short-term financing a firm should use.

---

Definitions:

Heckscher-Ohlin Model

A model in international trade theory that explains patterns of trade between countries based on their differences in factor endowments.

Import Goods

These are products brought into one country from another for sale.

Scarce Factors

Resources that are limited in availability and are constraint to economic production.

Capital

Refers to financial assets or physical resources that are used in producing goods or providing services.