the exposure of a firm's local currency value to transactions between foreign exchange traders.

the exposure of a firm's financial statements to exchange rate fluctuations

the exposure of a firms ongoing international transactions to exchange rate fluctuations

the exposure of a firm's cash flows to exchange rate fluctuations.

the exposure of a firm's cash flows to exchange rate fluctuations.

the exposure of a firm's ongoing international transactions to exchange rate fluctuations.

the exposure of a firm's local currency value to transactions between foreign exchange traders

the exposure of a country's economy (specifically GNP) to exchange rate fluctuations

Jacko plc

Kriner plc

the firms have about the same level of exposure

neither firm has any exposure

receiving earnings dividends from foreign subsidiaries

borrowing in a foreign currency and converting the funds to the local currency prior to the appreciation.

purchasing supplies locally rather than overseas.

exporting to foreign countries

borrowing in a foreign country and converting the funds to the local currency prior to the depreciation.

investing in foreign bank accounts denominated in foreign currencies prior to depreciation of the local currency

A and B

purchasing foreign supplies.

benefit, because the pound value of its SF position exceeds the pound value of its DK position

benefit, because the pound value of its DK position exceeds the pound value of its SF position.

be adversely affected, because the pound value of its SF position exceeds the pound value of its DK position

be adversely affected, because the pound value of its DK position exceeds the pound value of its SF position.

favorably; favorably affected but by a smaller degree

favorably; favorably affected by a higher degree

favorably; unfavorably affected

unfavorably; favorably affected

positive; interest expenses

negative; interest expenses

positive; gross profit

negative; gross profit

£150,000 outflow

£150,000 inflow.

£1,666,000 outflow.

£1,666,000 inflow

the exposure of a firms local currency value to transactions between foreign exchange traders

the exposure of a firms ongoing international transactions to exchange rate fluctuations

the exposure of a firms financial statements to exchange rate fluctuations

the exposure of a firms cash flows to exchange rate fluctuations