Which One of These Is an Example of Operational Hedging

question 40

Multiple Choice

Which one of these is an example of operational hedging?

• A) Producing goods in a foreign country for sale in the U.S
• B) Manufacturing goods in the country where they will be sold
• C) Producing products in one location and distributing them internationally
• D) Offsetting every spot trade with an opposing forward trade

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Definitions:

Opportunity Cost

The cost of the next best alternative foregone when making a decision.

Sweaters

Clothes typically made of wool, cotton, or synthetic yarn, designed to cover the upper body and arms, providing warmth.

Cookies

In computing, cookies are small text files stored on a user's device by a web browser, containing information about the user's website visits, preferences, and session details.

Division Of Labor

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency.