Describe transaction, operating, and translation exposure
What will be an ideal response?
Answer:
Transaction exposure is the potential loss in home currency value of future foreign currency payments.
Operating exposure reflects the impact on the long-run viability of a foreign business when unexpected exchange rates move against the domestic company.
Translation exposure is the risk of a negative effect on financial statements due to different countries' rules for translating foreign financial statements into consolidated reports of both foreign and domestic operations.
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In a proposal, the statement of qualifications
A) presents the concept, product, or service you're proposing. B) delineates the costs involved in your proposed solution. C) describes your company's experience, personnel, and facilities. D) asks a decision-maker to authorize your proposed solution. E) orients readers to the information that the proposal will include.
Which of the following statements is true of negligent failure to warn?
A) The manufacturers must provide warnings about obvious dangers. B) The manufacturers have to include warnings only for the original purchaser of the product, but not the user. C) The manufacturers need not include warnings about dangers from unforeseeable misuses of the product. D) The manufacturers of prescription drugs need not provide warnings to physicians of any chance of serious adverse reactions.