Strategic vs Tactical Currency Management

In the current global economic climate, currency fluctuations can significantly impact both corporate earnings and investment performance. Imagine you are a currency manager for a multinational corporation that operates in multiple countries and faces exposure to various currencies. Your task is to assess the merits of strategic versus tactical currency management approaches.

In your essay, discuss the differences between strategic and tactical currency management, providing the context in which each approach might be most effective. Include considerations of risk exposure, market conditions, and the corporation's financial objectives. Additionally, evaluate the potential impacts of geopolitical events and macroeconomic factors on your chosen approach. Support your analysis with relevant examples.