The gains from hedging would be more significant in countries who have a ________ tax jurisdiction.

Question

Quizplus · Accepted Answer

Hedging gains are more significant in countries with higher tax jurisdictions because hedging can help in managing the tax liabilities more efficiently by reducing taxable income through the recognition of losses or gains in a strategic manner. In higher tax jurisdictions, the potential tax savings from effective hedging strategies are greater due to the higher marginal tax rates.

The Gains from Hedging Would Be More Significant in Countries