Albert, CEO of XYZ, Inc., desires to expand the company’s sales through exports to three foreign subsidiaries. Albert knows that the target subsidiaries are located in countries that require transactions

Albert, CEO of XYZ, Inc., desires to expand the company’s sales through exports to three (3) foreign subsidiaries. Albert knows that the target subsidiaries are located in countries that require transactions to be denominated in the local currencies. Albert has researched foreign currency risk and knows that there is accounting exposure in accounting statements, operating exposure in future cash flows, and transaction exposure in outstanding obligations. Albert does not understand how these ri...