Question: 1) Explain how hedging may create value for a firm. How would a treasure determine whether or not to hedge, as well as the correct

1) Explain how hedging may create value for a firm. How would a treasure determine whether or not to hedge, as well as the correct strategy to hedge FX risks

2) Explain how expected changes in FX rates affects a decision to invest or borrow abroad. Should the cash management function be centralized? Explain the advantages and disadvantages of having a centralized cash management system.

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