When would a multinational use a lead strategy to hedge a risk? When would a multinational use a lag strategy for this purpose? In each case, give an example. A lead strategy is a choice by an MNE to make intracompany payments (for example, from an affiliate to the home office) earlier than in an arm’s-length situation, to move fund out of the country of the affiliate more rapidly. A lag strategy is a choice by an MNE to make intracompany payments (for example, from an affiliate to the home office) later than in an arm’s-length situation, to hold funds longer in the affiliate country.