1. Businesses can reduce foreign exchange risk by using hedging tools such as forward contracts. They can also operate in different countries, so they are not dependent on one currency. Another way is to use the same currency for both costs and sales. These methods help reduce losses from exchange rate changes.
2. A famous global company is McDonald’s. It uses a transnational strategy by keeping a strong global brand. At the same time, it adapts its menu to local cultures in different countries. This helps the company succeed worldwide.
3. Yes, I think the pros of globalization outweigh the cons. Globalization creates more jobs and allows countries to trade more easily. It also makes products cheaper for consumers. Although there are some disadvantages, the benefits are greater overall.