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9.(4 points) An international firm is said to have transaction exposure when a, the firm's...

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Accounting

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9.(4 points) An international firm is said to have transaction exposure when a, the firm's consolidated financial statements can be affected by exchange rate changes. b. the firm is going to receive or pay a promised amount in a foreign currency and the home currency value of the receivable or payable can be affected by exchange rate changes. c. the firm is owning an asset in a foreign country and the home currency value of the asset can be affected by unexpected exchange rate changes. d. the firm has prodifets sold in foreign markets and the foreign operating cash flows can be affected by unexpected exchange rate changes. 10. (4 points) 1). (multiple-choice) Which one of the two exchange rate situations could erode the competitive position of Honda, a Japanese car manufacturer, in the U.S. market if the firm's cars sold in the U.S. were produced domestically in Japan (2 points)? a. The Japanese yen becomes weaker relative to the U.S. dollar b. The Japanese yen becomes stronger relative to the U.S. dollar 2). (Short-answer) Suggest a strategy that Honda could use to mitigate the adverse exchange rate effects on its operating cash flows in the U.S. market (2 points)

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