General Studies · International Financial Management
Which of the following is a primary objective of foreign exchange risk management for multinational corporations?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To minimise the impact of exchange rate fluctuations on the company's financial performance✓
- 2To eliminate all foreign exchange risks associated with international operations
- 3To speculate on currency movements to maximise profits
- 4To centralise all foreign currency transactions in the home country
Correct answer
To minimise the impact of exchange rate fluctuations on the company's financial performance
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