When would multinational use a lead strategy to hedge a risk

Assignment Help Management Theories

Reference no: EM131367511

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 funds 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.

Reference no: EM131367511

Questions Cloud

Which is more important for us mnes : Based on current developments in the PC market in Japan, which is more important for US MNEs, integration or national responsiveness? Why?

Why are mnes interested in translation and consolidation : Why are MNEs interested in translation and consolidation of financial statements? Of what practical value is this activity to the company?

What is meant by the term economic exposure : What is meant by the term economic exposure? What is a financial strategy that an MNE could use to minimize this risk?

Explain in your own words the information security concerns : Explain in your own words the information security concerns that exist in protecting the United States' national infrastructure.Describe why the author of the article says that oil and gas industries are prime targets for cyber criminals more than ..

When would multinational use a lead strategy to hedge a risk : When would a multinational use a lead strategy to hedge a risk? When would a multinational use a lag strategy for this purpose?

Explain argument as inductive or deductive for given passage : Identify the arguments as inductive or deductive for given passages. Offer a brief explanation why each argument is either inductive or deductive. 1b has three questions.

Learn the skills and assimilate the knowledge : Saint Leo University is an educational enterprise. All of us, individually and collectively, work hard to ensure that our students develop the character, learn the skills and assimilate the knowledge essential to become morally responsible leader..

When might an mne use a forward exchange contract : 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)?

Describe the agent of sociology : Describe the agent of sociology that has changed the most during your lifetime and discuss the importance of this change

User Account

All Pages