An MNE Has a Contract for a Relatively Predictable Long-Term

question 2

Multiple Choice

An MNE has a contract for a relatively predictable long-term inflow of Japanese yen that the firm chooses to hedge by seeking out potential suppliers in Japan. This hedging strategy is referred to as:

• A) a natural hedge.
• B) currency-switching.
• C) matching.
• D) diversification.

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Definitions:

Producers

Organisms, mainly plants and algae, that can produce their own food through the process of photosynthesis, serving as the base of the food chain.

Reproduction

The process in biology where offspring are generated from their progenitors.

Generation

A group of individuals born and living around the same time, typically considered to be about 20–30 years.

Development

The process through which an organism grows or progresses, often involving physical, psychological, or social changes.