Corporations today are operating in an environment in which exchange rate changes may adversely affect their competitive positions in the marketplace.This situation,in turn,makes it necessary for many firms to
A)carefully manage their exchange risk exposure.
B)carefully measure their exchange risk exposure.
C)carefully manage and measure their exchange risk exposure.
D)none of the options

Question

Quizplus · Accepted Answer

With exchange rate changes posing a threat to the competitive position of corporations, it is crucial for firms to both manage and measure their exchange risk exposure. This will enable them to effectively mitigate the negative impact of fluctuations in exchange rates on their operations and profitability. Therefore, option C is the best choice as it emphasizes the need for both management and measurement.

Corporations Today Are Operating in an Environment in Which Exchange