Jons group is a multinational Business group. The group employs about 30,000 people in 20 countries with the US hosting the largest number of employees. The group is listed on the stock exchange. Once the occurrence of the global crisis, this company actively manages all three forms of currency exposures with particularly higher involvements in economic exposure management. However, some firms, does not manage its profit and loss translation exchange risk originating from translation of income statements of its subsidiaries. some multinationals manage translation exposure possibly because doing so reduces their stakeholders perceived risk.

a. Critically analyze the types of risks that multinational companies suffer from during the global disaster.

b. Critically analyze how this company can hedge its exposure for the different types of risks during this sever financial crisis with clarifying the hedging tools that could be used by the multinational company to hedge their risk.

c. Critically analyze how the different participants in the multinational area; investors, speculators, and arbitrageurs could use the foreign exchange market to reap their benefits. Explain the mechanism of each scenario