question archive What scenario is likely to be the most effective hedge an MNC could use to hedge the possible sale of fixed assets held in a foreign country in the future?

What scenario is likely to be the most effective hedge an MNC could use to hedge the possible sale of fixed assets held in a foreign country in the future?

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What scenario is likely to be the most effective hedge an MNC could use to hedge the possible sale of fixed assets held in a foreign country in the future?

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Answer:

The MNC should create a liability that matches the expected value of the assets at the point in the future when they may be sold

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