Financial hedging of firm’s operating exposure
List disadvantages and advantages of the financial hedging of firm’s operating exposure through the operational hedges (like relocating the manufacturing site)?
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Financial hedging is implemented rapidly with relatively low costs; however, it is complex in order to hedge against long-term, real exposure with financial contracts. Otherwise, operational hedges are costly, not easily reversible and time-consuming.
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Wheather it is correct or not that standard costing is a separate system in accounting?
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