Sometimes the overall performance of an MNC may already be insulated by offsetting effects between subsidiaries, and it may not be necessary to hedge the position of each individual subsidiary.

Question

Quizplus · Accepted Answer

This statement is true. When the performance of one subsidiary is negatively impacted, it may be offset by the positive performance of another subsidiary. Therefore, it may not be necessary to hedge the individual positions of each subsidiary, as the overall performance of the MNC may already be insulated.

Sometimes the Overall Performance of an MNC May Already Be