Which term describes the strategy of spreading activities across different currency zones?

The strategy of spreading activities across different currency zones is best described as currency diversification. This approach involves operating in multiple currencies to mitigate risk associated with currency fluctuations. By diversifying across different currency zones, a company can minimize the negative impact of adverse movements in any single currency and potentially benefit from favorable variations in others. This is particularly important in a global economy where exchange rates can be volatile, thus helping companies stabilize their revenues and costs.

Hedging refers to strategies aimed at reducing the risk of adverse price movements, typically using financial instruments to offset potential losses in currency values but does not inherently involve spreading activities across multiple currencies. Market penetration relates to strategies that focus on increasing market share within existing markets rather than managing exposure to currency risks. Forward trading involves contracts to buy or sell currencies at a predetermined future date, which is also not about the broad strategy of diversifying currency exposure and managing currency risk through operational activities.