A limitation of hedging translation exposure is that translation losses are not tax deductible, whereas gains on forward contracts used to hedge translation exposure are taxed.

Name: A limitation of hedging translation exposure is that translation losses are not tax deductible, whereas gains on forward contracts used to hedge translation exposure are taxed.
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Translation losses are not tax deductible, whereas gains on forward contracts used to hedge translation exposure are taxed.

A Limitation of Hedging Translation Exposure Is That Translation Losses