Leading and lagging strategies involve accelerating payments from weak-currency to strong-currency countries and delaying inflows from strong-currency to weak-currency countries.

Question

Quizplus · Accepted Answer

Leading and lagging strategies are used in international finance to manage currency risk by adjusting the timing of payments and receipts based on expected currency movements.

Leading and Lagging Strategies Involve Accelerating Payments from Weak-Currency to Strong-Currency