Suppose an MNC has international operations in only one foreign country. Even with this lack of diversification, the company can reduce its exchange rate risk by taking which of the following actions?
A. Increase its investment in that country, to make a hostile government takeover less likely.
B. Increase its borrowing in that local currency.
C. Reduce its borrowing in that local currency.
D. Arrange its businesses so that its cash inflows and cash outflows in that country's currency are matched as closely as possible.
E. Hire local managers as much as possible.