A Singapore-Based Manufacturing Company That Exports to a Number of Overseas

Multiple Choice

A Singapore-based manufacturing company that exports to a number of overseas countries,often through its subsidiary companies,is investigating alternative 'internal' hedging techniques to manage its foreign exchange risk exposures.All of the following risk management techniques are 'internal' hedging techniques,except:

A) creating a natural hedge.
B) invoicing in foreign currencies.
C) diversification of currencies.
D) leading and lagging cash flows.