How Should Multinational Corporations Reduce Economic Exposure

question 9

Multiple Choice

How should multinational corporations reduce economic exposure?

• A) Hedging foreign currency using a call option
• B) Hedging foreign currency using put options
• C) Competitive strategic and operational decisions
• D) Forward contracts on the foreign currency

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Definitions:

Preparedness

The concept in psychology that suggests organisms are innately predisposed to form certain associations or learn particular kinds of behaviors.

Stimuli

External or internal events or occurrences that elicite a response from the sensory system of an organism.

Phobia

An extreme or irrational fear or aversion to something.

Serotonin Synapses

The junctions between neurons where serotonin, a neurotransmitter important for mood regulation, is transmitted from one neuron to another.