Question: Smith & Sons routinely purchases inventory from Matsutoshi Corp. Because of unpredictability in the foreign currency markets, transactions denominated in yen leave Smith & Sons

Smith & Sons routinely purchases inventory from Matsutoshi Corp. Because of unpredictability in the foreign currency markets, transactions denominated in yen leave Smith & Sons exposed to the risks associated with exchange rate changes. Identify and discuss methods by which Smith & Sons can reduce its exposure to foreign currency losses.

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