What are the basic translation methods

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1. What is translation exposure? Transaction exposure?

2. What are the basic translation methods? How do they differ?

3. What factors affect a company's translation exposure? What can the company do to affect its degree of translation exposure?

4. 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?

Reference no: EM131278808

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