13.) Which of the following is a basic hedging technique during a depreciation? a) buy local currency forward b) sell a local currency put option c) reduce levels of local currency cash and marketable securities d) loosen credit (increase local currency receivables) Ans: 14.) Which of the following is likely to be a major long-run competitive advantage of a U.S. multinational? a) a decline in the real value of the U.S. dollar b) access to low-cost foreign raw materials c) its ability to quickly adapt its products and technology in line with changing market conditions d) offshore banking facilities located in the Gulf of Mexico Ans: 15.) Foreign direct investors would not consider the following factors before investing overseas a) the functioning and efficiency of local markets b) the trade policies of the guest country c) local language barriers d) potential restrictions on repatriating profits Ans