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:

Business Opportunity

A viable idea or proposal that can be capitalized on for profit, often requiring investment and risk.

Product Leadership

A competitive strategy focused on innovation and the development of superior products or services, emphasizing quality, performance, and features to gain market leadership.

New Product

A good, service, or idea that has not previously been made available to the market by its creator.

Future Demand

The projected desire or need for a product or service in the coming period, based on current trends and data.