Company X from USA has localized production near its suppliers in EU and exports its products worldwide. The company
A. does not have transactional exposure because majority of its suppliers are invoicing in Euros.
B. does not have translational exposure because it consolidates its reports in US dollars.
C. is not exposed to changes in foreign exchange rates.
D. has transactional, translational and operating type of exposure.
Answer:D
Company X from USA has localized production near its suppliers in EU and exports its products worldwide. The company
A. does not have transactional exposure because majority of its suppliers are invoicing in Euros. B. does not have translational exposure because it consolidates its reports in US dollars. C. is not exposed to changes in foreign exchange rates. D. has transactional, translational and operating type of exposure.