As used in international accounting,a "hedge" is:
A) a business transaction made to reduce the exposure of foreign exchange risk.
B) the legal barrier between the various divisions of a multinational company.
C) the loss in US $ resulting from a decline in the value of the US $ relative to foreign currencies.
D) one form of foreign direct investment.
Correct Answer:
Verified
Q1: Which of the following is a reason
Q2: What term is used to describe the
Q6: The multinationality index (MNI)includes the following ratio:
A)foreign
Q7: A translation adjustment may be necessary when:
A)notes
Q9: Foreign exchange risk arises when:
A)business transactions are
Q10: The ownership and control of foreign assets
Q11: The factor used to convert from one
Q13: Which of the following groups is a
Q13: Purchasing an option to buy foreign currency
Q35: What is a "greenfield" investment?
A) Farm land
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