Managers of MNCs are typically expected to use currency derivatives for speculation in order to improve profits.

Question

Quizplus · Accepted Answer

While currency derivatives can be used for speculation, it is not necessarily expected or encouraged for managers of MNCs. The use of currency derivatives is more commonly for hedging against currency fluctuations and managing currency risk. Speculation can be a risky strategy and may not align with the goals and values of the organization.

Managers of MNCs Are Typically Expected to Use Currency Derivatives