Question
5.4) Which five instruments are appropriate measures against economic exchange rate risks? A Increasing operational flexibility and diversification by creating a corporate structure across several
5.4) Which five instruments are appropriate measures against economic exchange rate risks? A Increasing operational flexibility and diversification by creating a corporate structure across several currency areas. B Concentrating on domestic debt when financing international operations. C Adjusting a companys financing operations to its cash-flow structure by taking out foreign debt. D Using financial derivatives to hedge short-term cash-flows. E Invoicing in domestic currency. F Decreasing the payment terms (time to payments) given to customers. G Avoiding markets with volatile currencies. H Increase brand loyalty of customers to reduce quantity effect. I Increase customers switching costs to reduce quantity effect. J Take over competitors that account for quantity effect. K Focus on domestic subsidiaries only and export.
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