MNCs generally do not need to hedge because shareholders can hedge their own risk.

Name: MNCs generally do not need to hedge because shareholders can hedge their own risk.
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MNCs may still need to hedge because shareholders may not be able to fully hedge their risk or may not want to take on additional risk by doing so. Additionally, hedging can help MNCs manage their cash flows and limit the impact of exchange rate fluctuations on their financial statements.

MNCs Generally Do Not Need to Hedge Because Shareholders Can