Prior to beginning work on this discussion forum, watch the video,Ray Dalio: How to Build a Company Where the Best Ideas Win(Links to an external site.). In the final paper, you will formulate foreign...

Foreign exchange strategies
Why do some companies like Apple hedge foreign currency sometimes and not at other times and companies like Walmart decide not to hedge currency at all?
For Apple Company they sometimes try to hedge currency against future appreciation by purchasing the currency by usage of the forward exchange rate. This was the only strategy used by Apple in order to hedge their funds and protect their funds against future risks. But, it is due to increase in the value of the dollars which was raised much faster than it was expected to increase. Hence, it is very difficult to accurately estimate when the price of the dollar will increase or decrease. Therefore, if Apple invests all the times in the foreign currency through hedging and on the same time the price of the dollar increases to offshore revenue the profits margin can lead to significant financial risks and hence customers will buy less of Apple products. This is the only reason why Apple cannot fully hedge their funds against the future increase in the US dollars....