Is your business subject to transaction exposure

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Reference no: EM133223819

Question: Monitor Exchange Rate Trends in CHINA: Use a business periodical or the Internet to determine how the value of the foreign currency of concern has changed in each of the last five weeks. Does it appear that there is a trend over the last five weeks? What is the mean percentage change over these weeks? If you believed that the currency's value would continue following the recent trend, would it appreciate or depreciate in the near future?

Recognize Exposure to Exchange Rate Risk in CHINA: Recall that when you created your business idea, it was assumed that your receivables would be denominated in the foreign currency of concern upon the sale of your products. Describe your exposure to exchange rate risk. That is, describe the exchange rate conditions affecting the performance of your business. Is your business subject to transaction exposure? Economic exposure? Translation exposure? Explain why your business is or is not subject to each of these types of exposure.

Reference no: EM133223819

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