Question 1

The distant sale of fixed assets in foreign countries could be hedged by using long-term forward contracts, especially with emerging market currencies.

a) True

b) False

Question 2

A macro-assessment of country risk excludes aspects relevant to a particular firm or project.

a) True

b) False

Question 3

A country risk analysis is important because it helps companies deciding on whether to hedge contractual transactions.

a) True

b) False