What are the advantages and disadvantages of the common methods for controlling translation exposure?

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Advantages of the common methods for controlling translation exposure include hedging against currency fluctuations, reducing transaction costs associated with foreign exchange transactions, and managing interest rate risk. On the other hand, some disadvantages include the potential for adverse selection (i.e., when one party to a transaction has better information than the other), increased complexity in accounting and reporting procedures due to multiple currencies, and counterparty credit risk (i.e., if one party defaults on their obligation).