Strategic vs. Tactical Currency Management

As a portfolio manager for a multinational corporation, you have been tasked with managing the foreign exchange risk associated with the company's international operations. Your company has historically adopted a hedging strategy focused primarily on long-term currency risk management, subsequently viewed as a strategic approach. However, recent volatility in currency markets has prompted discussions about shifting towards a more tactical approach that could capitalize on short-term market movements.

In your response, critically analyze the distinction between strategic and tactical currency management. Discuss the advantages and disadvantages of each approach, and examine how a combination of both strategies could be employed to enhance currency risk management. Provide examples or case studies to illustrate your points and support your arguments.