As used in international accounting, a “hedge” is: A)a business transaction made to reduce the exposure of foreign exchange risk. B)the legal barrier between the various divisions of a multinational company. C)the loss in US$ resulting from a decline in the value of the US$ relative to foreign currencies. D)one form of foreign direct investment.

As used in international accounting, a “hedge” is: A)a business transaction made to reduce the exposure of foreign exchange risk. B)the legal barrier between the various divisions of a multinational company. C)the loss in US$ resulting from a decline in the value of the US$ relative to foreign currencies. D)one form of foreign direct investment.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates

Section: Chapter Questions

Problem 6QA

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