All of the following are management tools available for a U.S. company to hedge its net investment in a foreign affiliate except for:
A) Forward exchange contracts
B) Foreign currency commitments
C) Intercompany financing arrangements including intercompany transactions
D) None of these.

Question

Quizplus · Accepted Answer

All the options listed (A, B, and C) are valid management tools for hedging net investment in a foreign affiliate. Therefore, "None of these" is the correct choice as there is no exception among the given options.

All of the Following Are Management Tools Available for a U.S