International Finance

FOR NYANYA:

DUE:  02/03/2015, Tuesday  18:00

Answer should be complete and concise and should be at least 150 words.

As usual - direct to the point and concise answer is requested. 

Answer should be in the context of foreign exchange markets and/or foreign exchange rates.

QUESTIONS:

How a transaction exposure can be hedged?

What are the different types of hedging transaction exposures?

What is an operating exposure?

What is a macroeconomic uncertainty? 

How borrowings from a parent company serve as a natural hedge for most subsidiaries?

Please let me know if you have any questions or need clarification.

Thanks.