When multinational corporations are trying to hedge exposures, which of the options is better: hedging transaction exposure or selectively hedging risks? and why?

Suppose we have 2 countries: Home and Foregin. Each has one asset: a banana tree. The bananas go bad after every month, so they cannot be saved. The prouction is as follows: {Home, Foreign} {200, 100} with probability 1/4. {100, 150} with probablity 3/4. A) What would be the expected yield for each country without trade?  B) Countries can now trade shares of stock of any size. How much Foreign stocks will Home buy? How much stocks will Home trade in return?