A Customer Based in the UK Exports Automotive Parts to the US

question 111

Multiple Choice

A customer based in the UK exports automotive parts to the US. His main competitor is in France? What type of exposure to currency risk is posed by movements in EUR/USD?

• A) Transaction exposure
• B) Translation exposure
• C) Economic exposure
• D) None

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Definitions:

Approach-Approach Conflict

A decision-making dilemma involving two desirable options, where choosing one means losing the other.

Emotion-Focused

An approach in psychotherapy and counseling that emphasizes the management and understanding of emotions as a pathway to healing and well-being.

Problem-Focused

A coping strategy aimed at addressing the root cause of a stressor or problem, rather than just mitigating its symptoms.

Approach-Approach Conflict

A psychological conflict that occurs when a person needs to choose between two desirable options.