What means do they use to hedge against exchange rate risk


Select a U.S. multinational company, and respond to the following questions:

• In terms of currency denomination, describe how the firm prices its revenues and costs.

• For multinational enterprises (MNEs) with multiple foreign operations, consider any 2 of those operations and the contribution they are making to the parent firm's profits.

• What means do they use to hedge against exchange rate risk?

• Using this information, what do you think would be the effect of increases or decreases in the dollar's exchange value on the firm's profitability?

• Be sure to show all applicable work.

Present your findings as a Word document of 7-10 pages formatted in APA style. Include 5-7 academic, peer-reviewed references that are relevant to and support the deliverable.

Submitting your assignment in APA format means at a minimum, you will need the following:

1. Title page: Remember the running head AND THE TITLE IN ALL CAPITALS.

2. Abstract This is a summary of your paper-not an introduction. Begin writing in third-person voice.

3. Body: The body of your paper, begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3-4 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.

4. Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.

• Explain the macroeconomic and microeconomic concepts and how they relate to the management of a global organization

• Critically analyze and evaluate real-life economic problems and opportunities by applying economic concepts, principles, and theory

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Finance Basics: What means do they use to hedge against exchange rate risk
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