An MNC Frequently Uses Either Forward or Futures Contracts to Hedge

question 116

True/False

An MNC frequently uses either forward or futures contracts to hedge its exposure to foreign receivables. To do so, the MNC can either sell the foreign currency forward or sell futures.

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Definitions:

Economic Approaches

The various theories and methods used to analyze and understand the economy, markets, and consumer behavior.

Organizational Development

An area dedicated to advancing people's capabilities and results in executing successful changes and achieving better performance within organizations, encompassing research, theory, and hands-on practices.

Change Approaches

Strategies or methods implemented to manage, facilitate, and promote adaptation to new conditions, processes, or environments within organizations.

Promoting Change

The process of advocating for and implementing alterations or improvements within an organization or societal structure.