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Sooner Co$.$ is a U$.$S$.$ wholesale company that imports expensive high$-$quality luggage and sells it to retail stores around the United States. Its main competitors also import high$-$quality luggage and sell it to retail stores. None of these competitors hedge their exposure to exchange rate movements. Why might Sooner's market share be more volatile over time if it hedges its exposure?

If Sooner Company hedged its imports, then it would have an advantage over the competition when the dollar $-$Select$-$weakenedstrengthenedItem $1$ and could possibly gain market share or would have a higher profit margin. It would be at a disadvantage relative to the competition when the dollar $-$Select$-$weakenedstrengthenedItem $2$ and may lose market share or be forced to accept a lower profit margin.