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Schnell, a large German-based automotive manufacturer, is selling the majority of its cars overseas, predominantly to China, Russia and India. By its own calculations, the negative effect of exchange rates has totalled EUR 2.4 billion in the last five years. It does not want to pass on its exchange rate costs to consumers as other competitors have done, so it has opted to implement a natural hedging strategy. How can Schnell implement this strategy?
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