Type of firm naturally hedged against exchange rate exposure, Other Management

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Type of firm naturally hedged against exchange rate exposure

Assignment:

1. Why do you think Lufthansa and Boeing did not use some form of ‘‘currency risk sharing'' in their 1985-1986 transaction?

2. Which type of firm do you believe is more ‘‘naturally hedged'' against exchange rate exposure, the purely domestic firm (the barber) or the multinational firm (subsidiaries all over the world)?

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Other Management: Type of firm naturally hedged against exchange rate exposure

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Other Management: Type of firm naturally hedged against exchange rate exposure

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