Straight forward solution to reducing or hedging risk

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There is often a straight forward solution to reducing or hedging risk. In the case of Universal, the firm could have asked the Irish plant to supply to European customers, and the US plant to supply to US customers. That would hedge against f/x risk, and the employees would find it fair. In the case of GM, the firm could raise enough equity to pay down its debt and eliminate bankruptcy risk. What, in your opinion, are the impediments to these “simple” solutions?

Reference no: EM131934785

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