If a Firm Must Pay for Goods It Has Ordered

question 97

Multiple Choice

If a firm must pay for goods it has ordered with foreign currency,it can hedge its foreign exchange rate risk by

• A) selling foreign exchange futures short.
• B) buying foreign exchange futures long.
• C) staying out of the exchange futures market.
• D) doing none of the above.

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Definitions:

Feedback

Information or responses given back to individuals about their actions or performance, serving as a basis for improvement or adjustment.

Customer Co-creation

The process of involving customers in the development or innovation of products and services, enhancing value and engagement.

Transitional Archiving

The process of systematically organizing, storing, and preserving records, documents, or materials during periods of change or transition.

Real-time Marketing

Marketing practices that involve responding quickly to current events, trends, or feedback from customers using social media and other digital platforms.