# Hedging, natural (natural hedging)

- Canonical URL: https://www.gerhardmerk.de/hedging-natural-natural-hedging
- Post ID: 594396
- Modified: 2023-07-25T21:02:03+00:00
- Language: en

## Definition

A more satirical expression for the fact that a company moves part of its production to a foreign currency area if a significant part of its sales are also made there. - By such a production locally (local manufacturing: so also said in German and then capitalized) one escapes fluctuations (Oszillationen; oscillations: fluctuations above and below a mean value) of the exchange rate, which may bring losses to the company - either from the procurement side, for example: EUR is low against the USD; goods purchased in the USA become more expensive, or - from the sales side, for example: EUR is high against the USD, making exported goods from the euro area more expensive in the U.S. and less in demand. - See Onshore Banking. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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- Generator: Merk Knowledge 1.1.1