A MNC seeking to reduce transaction exposure with a strategy of leading and lagging
A)can probably employ the strategy more effectively with intra firm payables and receivables than with customers or outside suppliers.
B)can employ the strategy most easily with customers, regardless of market structure.
C)can employ the strategy most easily with suppliers, regardless of market structure.
D)none of the above

Question

Quizplus · Accepted Answer

Leading and lagging involves either accelerating or delaying foreign currency payments to manage transaction exposure. This strategy can be more effectively implemented with intra-firm payables and receivables as the MNC has greater control over the timing of payments with these transactions. In contrast, implementing leading and lagging with customers or outside suppliers may be more challenging as the MNC may not have as much negotiating power over payment terms and timing.

A MNC Seeking to Reduce Transaction Exposure with a Strategy