QUESTION
Vornoda Inc., a multinational clothing and accessory brand, has been facing huge economic losses due to unpredictable exchange rate movements. In order to gain considerable immunity against such currency fluctuations, Vornoda Inc. should:
A. pursue strategies that increase its economic exposure.
B. avoid using instruments like forward market and swaps.
C. disperse production to different locations around the globe.
D. not contract out manufacturing.
E. restrict its low-value-added manufacturing to one location.
ANSWER
C
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