When might an mne use a forward exchange contract a, Management Theories

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When might an mne use a forward exchange contract a

1. 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?

2. What role does net present value (NPV) play in the review of capital expenditure proposals? Give an example.

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Management Theories: When might an mne use a forward exchange contract a

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