What is one of the three primary strategies that nonfinancial companies use to cope with currency risks?

While maintaining low inventories can reduce costs and improve liquidity, it does not directly address currency risks. This strategy may help a company manage its overall financial health, but it does not provide a mechanism to protect against fluctuations in currency values.

Reducing currency liabilities can be a part of a broader risk management strategy, but it is not a primary method for coping with currency risks. This choice focuses more on adjusting the company’s balance sheet rather than actively managing currency exposure through hedging techniques.

Using foreign dealers may expose a company to additional currency risks rather than mitigate them. This strategy involves engaging in transactions that could fluctuate in value due to currency exchange rate changes, making it less effective in managing currency risk compared to strategic hedging.