Question

what is the external hedging technique?
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Answer 1

Answer:

THE EXTERNAL TECHNIQUES Forward contracts The forward market is where you can buy and sell a currency, at a fixed future date for a predetermined rate, i.e. the forward rate of exchange. This effectively fixes the future rate.

Answer 2

Answer:

HEDGING TRANSACTION RISK - THE EXTERNAL TECHNIQUES Forward contracts The forward market is where you can buy and sell a currency, at a fixed future date for a predetermined rate, i.e. the forward rate of exchange. This effectively fixes the future rate.