Lexil Company is an Australian multi-national company specialized in textile industry like Benetton corporation, the French one. Both companies established one of their affiliates in Egypt. After three years, Lexil Company tried to access to India through a new affiliate to be able to reduce the labour cost and offer a more competitive price than its competitor. Which of the below methods may be viewed as the most effective in protecting Benetton company against its exposure after the new strategy adopted by Lexil Company? O a. Money market hedgés O b. Futures market hedging O . Forward contract hedges O d. Geographical diversification

Lexil Company is an Australian multi-national company specialized in textile industry like Benetton corporation, the French one. Both companies established one of their affiliates in Egypt. After three years, Lexil Company tried to access to India through a new affiliate to be able to reduce the labour cost and offer a more competitive price than its competitor. Which of the below methods may be viewed as the most effective in protecting Benetton company against its exposure after the new strategy adopted by Lexil Company? O a. Money market hedgés O b. Futures market hedging O . Forward contract hedges O d. Geographical diversification

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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