Question

Cyber Corp., based in Toronto, decided it wanted to collect all of its foreign currency receivables from Indonesia early because the currency in Indonesia was expected to depreciate. This is an example of ____.

Answer 1

Answer:

lead strategy.

Explanation:

A lead strategy refers to taking action anticipating future events that can affect your business either positively or negatively. E.g. a company might increase its production output anticipating an increase in the demand for their products. In this case the company is anticipating that a foreign currency might depreciate and decides to collect all its receivables early in order to exchange them into another currency that is more stable.