Mexichem, a Mexican company specializing in certain piping, vinyl, and other chemical products, exports 70% of its $5.7 billion in annual sales: 30% to the U.S. and 20% each to Japan and Europe. Assume it incurs all its costs in Mexican pesos, while most of its export sales are priced in the local currency.

Can Mexichem eliminate its operating exposure by hedging its position every time it makes a foreign sale or by pricing all foreign sales in pesos? Why or why not?