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  3. 2.) the ability to take advantage of the portfolio

2.) The ability to take advantage of the portfolio effect through exposure netting to manage...

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2.) The ability to take advantage of the portfolio effect through exposure netting to manage foreign risk assumes the firm will use a) centralization of its hedging activities b) segmentation of its hedging activities to the firm's foreign subsidiaries c) decentralization of its hedging activities d) foreign banks and the purchase of forward contracts. Ans: 3.) Which one of the following is a tough-minded economic policy that may halt capital flight? a) making utilities publicly owned b) granting government subsidies to local firms c) imposing protective tariffs d) removing barriers to investment by foreigners Ans: 4.) Political risk is primarily a function of a) instability in the government b) uncertainty over property rights c) the level of violence in the society d) a country's national debt Ans

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