The global marketing manager can mitigate foreign exchange risk by the use of:
A) Forward contracts
B) Currency options
C) Futures contracts
D) All of the above
E) (a) and (c) only

Question

Quizplus · Accepted Answer

The global marketing manager can mitigate foreign exchange risk by using all of the proposed methods, including forward contracts, currency options, and futures contracts. Each of these methods provides a way to lock in exchange rates or limit the exposure to unfavorable changes in exchange rates, providing a way to manage risk when doing business in foreign markets. By using a combination of these methods, companies can create a comprehensive risk management strategy that helps them navigate the complex landscape of international business.

The Global Marketing Manager Can Mitigate Foreign Exchange Risk by the Use