Hedging Is a Strategy Adopted by Multinational Corporations to Neutralize

question 5

True/False

Hedging is a strategy adopted by multinational corporations to neutralize their exposure to fluctuating currency exchange rates.

---

Definitions:

Net Profit Margin

A financial metric showing the percentage of revenue remaining after all operating expenses, taxes, and interest have been deducted.

Logistics Management

involves overseeing the efficient and effective transportation and storage of goods from origin to consumption.

Shipping Security

Measures and protocols implemented to protect cargo from theft, loss, or damage during transportation.

Few Suppliers Approach

A market condition characterized by a small number of suppliers, often leading to less competition and potentially higher prices.