Question: 5.4) Which five instruments are appropriate measures against economic exchange rate risks? A Increasing operational flexibility and diversification by creating a corporate structure across several

5.4) Which five instruments are appropriate measures against economic exchange rate risks? A Increasing operational flexibility and diversification by creating a corporate structure across several currency areas. B Concentrating on domestic debt when financing international operations. C Adjusting a companys financing operations to its cash-flow structure by taking out foreign debt. D Using financial derivatives to hedge short-term cash-flows. E Invoicing in domestic currency. F Decreasing the payment terms (time to payments) given to customers. G Avoiding markets with volatile currencies. H Increase brand loyalty of customers to reduce quantity effect. I Increase customers switching costs to reduce quantity effect. J Take over competitors that account for quantity effect. K Focus on domestic subsidiaries only and export.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!