Due to omnipresent globalization throughout the world today, allmultinational corporations are subjected to multi-faceted foreignexchange regulations, which impact their business operations andimpact their financial success. At the business level, currencyrisk is called FX exposure. Identification of currency risks hasbecome a crucial task for all multinational corporations and theability to measure FX exposure is vital.
- Discuss how multinational corporations manage foreign exchangerisk.
- Discuss how some multinational corporations hedgecurrency.
