Assignment:
Q1. What is translation exposure? Transaction exposure?
Q2. What are the basic translation methods? How do they differ?
Q3. What factors affect a company’s translation exposure? What can the company do to affect its degree of translation exposure?
Q4. What alternative hedging transactions are available to a company seeking to hedge the translation exposure of its German subsidiary? How would the appropriate hedge change if the German affiliate’s functional currency were the U.S. dollar?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.