The globalization of the world economy and the devaluation of the U.S. dollar have allowed more American companies to enter the export market. Many managers, who previously avoided these markets, are finding that international transactions can make their companies more competitive in marketing products and procuring parts and materials. As new companies are exposed to foreign exchange risks, managers will be concerned with development of an effective hedging program.
There are a variety of hedging strategies available to assist managers in controlling foreign transactions risks. These incl…
