Take Canadian Home Hardware company to Finland and Analyze the company's risk of entering into a foreign market. Explain the following questions with examples (the answers must be solution-oriented) and share references.

Q. As a MNC you encounter Foreign Exchange Risk -Hedging

(a) Discuss the different options for hedge receivables and payables (as discussed in class) and recommend to your Board the best hedging strategy for the MNC. Be sure to qualify your recommendations.

(b) As a MNC when would you use the spot rate, discuss

(c) If the MNC currency's (host i.e. Canadian) is weaker how will it impact your investment (from question 2) and profits.

(d) Go to www.oanda.com Click on Currency Tools, then Historical Currency Converters, and Currency Trends. Explain how the home currency has changed (compare with host currency i.e. Finland) over the last three months and how will it impact the MNCs business.

(e) When the home currency appreciate is it bad for everyone? Discuss using examples. (think about repatriating revenue home or if you borrowed from home (question 2) to fund the MNC).

Note: Please share the references