Should companies hedge their exposures to foreign exchange risk?

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Learning Goal: I’m working on a finance discussion question and need an explanation and answer to help me learn. Part 1Attracting foreign direct investment (FDI) is considered one of the main challenges faced by economies. It is also one of the main factors that help develop the national economy since it contributes to increasing GDP growth rates in the host country, developing technical staff, creating jobs, transferring modern technology, and supporting competitive capacities. Discuss the current investment environment in KSA, shed light on current legislations that are attractive for investment, and identifying the most important determinants of investment in KSA.Part 2 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.reference is required plagiarism not allowed at all

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