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The company you work for has decided to expand operations overseas. In doing so, you believe you may be taking on additional risk as changes

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The company you work for has decided to expand operations overseas. In doing so, you believe you may be taking on additional risk as changes in exchange rates will affect the profitability of these operations. You raise these concerns with your supervisor, but they tell you that the cost of hedging exchange rate risk is too high and you should accept market fluctuations instead. Provide two (2) reasons as to why the hedge could add value to the company despite the cost of the risk management process

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