Question: What is the difference between currency hedging and strategic hedging? a . Strategic hedging involves in - house financial experts; currency hedging involves managers from
What is the difference between currency hedging and strategic hedging?
a Strategic hedging involves inhouse financial experts; currency hedging involves managers from different functional areas.
b Currency hedging is a strategy for financial companies; strategic hedging is a strategy for nonfinancial companies.
c Currency hedging reduces exposure to unfavorable foreign exchange movements; strategic hedging is risky in case of wrong bets of currency movements.
d Strategic hedging refers to geographically dispersing operations in multiple currency zones; currency hedging focuses on using forward contracts and swaps to contain currency risks.
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