Is it a good strategy for BMW to deal with exchange rate risk. What are the possible arguments in favor of and against the hedging strategy of BMW? If you are a manager or leader, what are alternative ways for BMW to hedge the exchange rate risk and to deal with the tariff issues?(have the following text into consideration)

The US dollar has risen sharply in 2022 compared to currencies of many other countries including the British pound, the Japanese yen, and the Euro. BMW just announced in March 2022 that it will invest more than $200 million to construct a 219,000-square-foot press shop at its South Carolina plant.

It is very important for multinational corporations to manage operating exposure to stabilized cash flows in the face of fluctuating exchange rates. Euro had rapidly strengthened and hit multi-year highs against the dollar and the pound in the first quarter 2018. Late 2017, European Central Bank (ECB) had issued terrifying warning that Euro is too strong and could plunge EU economy back into crisis. The dollar was also relatively weak during the period of 2007 and 2008.

The strong euro had caused problems for European businesses, such as BMW, and made this car manufacturer lost half a billion dollars in 2007 due to the unfavorable exchange rate. Selling cars made in Europe to US customers was no longer profitable. So, BMW planned to expand its production in the US.