When might an MNE use a forward exchange contract (a contract with a bank to buy or sell foreign exchange at a future date, with the exchange rate and value fixed today) When might the firm decide to forgo this strategy and leave a particular foreign currency transaction unhedged

Question: When might an MNE use a forward exchange contract (a contract with a bank to buy or sell foreign exchange at a future date, with

When might an MNE use a forward exchange contract (a contract with a bank to buy or sell foreign exchange at a future date, with the and value fixed today)? When might the firm decide to forgo this strategy and leave a particular foreign currency transaction unhedged?

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