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Question - Hedging foreign currency is a concept that serves as a stabilizing factor when dealing with the global economy and transactions that are computed and fulfilled in a foreign currency.
However, hedging is used in many other situations than foreign currency. Conduct research to get a firm grasp on the concept of hedging. Feel free to research hedging in the stock market, futures market, or any other aspect of the business world that uses hedging as a risk offset.
In your own words, define hedging? Why is it important that you understand this concept? How is this concept utilized in the accounting industry?
Respond in 150 words or more and cite references using APA format.
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