Question

Explain the methods of market initiative as ahedging technique of economic exposure

Answer 1

It is significant for the firm to know the operating market, its structure and ability to decrease effect of currency fluctuations in order to manage the economic exposure. In order to improve the financial position of a company and to avoid any economic exposure company could use marketing initiative as a hedging technique. The marketing initiatives that company could use as hedging technique are selecting appropriate targeted market, then to align product strategy, pricing and promotional activities.