Hedging the potential loss of domestic sales because of an expected weakening of a foreign currency would be a strategic hedge.

Question

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Hedging against the potential loss of domestic sales due to an expected weakening of a foreign currency is considered a strategic hedge because it involves planning and implementing financial strategies to mitigate the risk associated with adverse currency movements, thereby protecting the company's financial position and competitive advantage.

Hedging the Potential Loss of Domestic Sales Because of an Expected