It is appropriate for the costs of hedging to be borne by the ________ department of the multinational corporation.

Question

Quizplus · Accepted Answer

Hedging is a financial risk management strategy that involves taking offsetting positions in order to reduce the impact of market fluctuations. It is typically the responsibility of the treasury department to manage financial risks, including currency risk. Therefore, it is appropriate for the costs of hedging to be borne by the treasury department of the multinational corporation. The other departments listed, marketing, legal, and shipping, are not directly related to financial risk management.

It Is Appropriate for the Costs of Hedging to Be