Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?
A . Hire a risk consultant.
B . Implement a hedging strategy.
C . Maintain a large foreign currency balance.
D . Insist that customers only pay in a stable currency.

View Answer

Answer: B