Final answer:
To protect itself against exchange rate fluctuations, Damar can engage in hedging, diversification, and price adjustment strategies.
Step-by-step explanation:
In order to protect itself against exchange rate fluctuations, Damar can take several measures:
- Hedging: Damar can use financial instruments such as forward contracts or options to lock in a specific exchange rate. This can provide certainty and protect against adverse movements in the exchange rate.
- Diversification: Damar can diversify its operations and revenue streams across different countries. By doing so, it can reduce its exposure to exchange rate fluctuations in any single currency.
- Price Adjustment: Damar can adjust its prices in response to exchange rate fluctuations. For example, if the local currency depreciates, it can increase its prices in that market to maintain its profit margin.