You are a research analyst of a multinational company based in Madrid which is contemplating to set up a large manufacturing plant producing modern furniture in Vietnam or in the USA. The CEO has asked you to write a report on the following:

Comparing foreign exchange risks in Vietnam with those in the USA and the ways in which they can be mitigated. You should cover

1. The three main foreign exchange exposures.
2. Financial and operational hedging techniques to mitigate each exposure.
3. Critically analysis the risk management strategies discussed in step 2 and evaluate their usefulness and limitations and potential difficulties in their introduction into the company's risk management practices.