An international project can reduce a firm's overall risk as a result of international diversification benefits, especially if the economics of the countries where the firm does business are

	a.	are strongly correlated
	b.	dependent on natural resources
	c.	not highly correlated
	d.	experiencing government instability

An MNC may decide to hedge part or all of its receivables transactions denominated in foreign currencies so that it is exposed to the possible depreciation of those currencies.

True

False

Although MNCs may desire to reduce their economic exposure to exchange rate movements, their decisions should focus on maximizing their value.

True

False