Sometimes the overall performance of an MNC may already be insulated by offsetting effects between subsidiaries and it may not be necessary to hedge the position of each individual subsidiary.

Question

Quizplus · Accepted Answer

This statement is true. The performance of a multinational corporation (MNC) is often influenced by the collective performance of its subsidiaries, and offsetting effects between subsidiaries can help to insulate an MNC's overall performance from currency fluctuations or other risks. Therefore, it may not always be necessary to hedge every individual subsidiary's position.

Sometimes the Overall Performance of an MNC May Already Be