An example of an operating hedging strategy is

Question

Quizplus · Accepted Answer

Building a plant in a foreign market is an example of an operating hedging strategy, as it involves a company establishing a physical presence in a foreign market, which can help mitigate risks associated with fluctuations in currency exchange rates and other economic uncertainties. Options and swaps, on the other hand, are examples of financial hedging strategies that allow companies to limit their exposure to market risks without necessarily changing their operational activities or investments.

An Example of an Operating Hedging Strategy Is