Should companies hedge their exposures to foreign exchange risk? Discuss both views critically and state your recommendation. Use relevant research results to support your answer.

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You are required to provide a critical analysis of the following question in 1000 words. Use evidence and recent research results to support your answer. You should refer to the wider literature and real-life examples.

Should companies hedge their exposures to foreign exchange risk? Discuss both views critically and state your recommendation. Use relevant research results to support your answer.