Differentiate Between Transaction and Translation Risks

question 52

Essay

Differentiate between transaction and translation risks. Explain how these risks affect firms and investors.

---

Definitions:

Specific Performance

A judicial order compelling a party to execute their duties as specified in a contract instead of compensating with damages for contract violation.

Historical Artifact

An object made or used by humans in the past, often of cultural or historical significance, studied to learn about human history.

Rembrandt Painting

An artwork created by Rembrandt van Rijn, a Dutch painter and etcher renowned for his contributions to art during the Dutch Golden Age.

Lost Profits

The amount of income a business fails to earn due to disruptions, such as breaches of contract or other damages, and seeks to recover through legal claims.