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 stakeholder’s perceived risk. (Reference …………………………………)

Required

a. critically discuss the risks that multinational companies may suffer from during the global disaster.

b. critically analyze how the Multinational companies can hedge their exposure for the different types of risks especially during the financial disaster times with clarifying the risk management tools that could be used by multinational businesses to hedge their risk.