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To Hedge a Contingent Exposure, in Which an MNC's Exposure

question 74

Multiple Choice

To hedge a contingent exposure, in which an MNC's exposure is contingent on a specific event occurring, the appropriate hedge would be a(n) ____ hedge.


Definitions:

Raw Materials

Materials that are used to make a product.

Budgeted Production

The planned quantity of goods or services that a company aims to produce over a certain period, often based on forecasted demand.

Kilograms

A unit of mass in the metric system, equivalent to one thousand grams.

Production Budget

An estimate of the total units that must be produced in a given period to meet anticipated sales demand and ending inventory requirements.

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