he risks involved when holding debt in foreign currency are even greater. However, it can be seen as a way through which a company can manage exchange rate risk when it has international sales. A popular reason for issuing foreign debt is to provide a natural hedge against foreign currency devaluation (Graham and Harvey, 2001). Allayannis and Ofek (2001) investigate the exchange rate exposure management of a sample of Standard & Poor's 500 non-financial firms for 1993 and find that US exporters tend to prefer foreign currency derivatives to foreign debt but that multinational firms with operations abroad have no strong preferences. In the case of multinational companies holding foreign debt through the issuance of foreign denominated debt through international capital and money markets (e.g. bonds denominated in yen) is a good way to hedge foreign assets and subsidiaries but not foreign sales (Aabo et al., 2015). Firms tend to decide upon their net borrowing strategies in foreign dominated debt based upon accounts receivable in foreign currency rather than based on past year revenues from foreign currencies. Based on the preceding analysis could you express your view towards the issue of foreign dominated debt and the extent to which this policy plus currency derivatives can offer the necessary shields for an exporting company.