Which of the following is a difference between currency hedging and strategic hedging?
A) Currency hedging offsets any currency losses in one region through gains in other regions,while strategic hedging focuses on one region.
B) Currency hedging is effective in predicting currency movements,whereas strategic hedging has significant currency risks.
C) Currency hedging deals in multiple currency zones,whereas strategic hedging deals in a single currency zone.
D) Currency hedging is done through in-house financial specialists,whereas strategic hedging is done through sourcing or foreign direct investment.

Question

Quizplus · Accepted Answer

Currency hedging typically involves financial instruments and is often managed by financial specialists, while strategic hedging involves broader business strategies like sourcing or foreign direct investment to mitigate risks.

Which of the Following Is a Difference Between Currency Hedging