Question: Please explain why reducing economic exposure is a much more complex task than hedging foreign currency transactions. Your answer needs to mention the items discussed

Please explain why reducing economic exposure is a much more complex task than hedging foreign currency transactions. Your answer needs to mention the items discussed in class as well as in the videos and needs to focus on how you would determine the source of the MNC's economic exposure. When discussing the determination of the sources of economic exposure, make sure to delve into the specific tools you would have available to you, i.e., how would you know that the company has this type of exposure?

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