What Is Meant by Translation Exposure

question 25

Multiple Choice

What is meant by translation exposure?

• A)long-run effect of changes in exchange rates on future prices,sales,and costs
• B)impact of currency exchange rate changes on the reported financial statements of a company
• C)extent to which a firm's future international earning power is affected by changes in exchange rates
• D)extent to which the income from individual transactions is affected by fluctuations in foreign exchange values
• E)The obligations for the purchase or sale of goods and services at previously agreed prices

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Definitions:

Taboos

Social or cultural practices that are prohibited or restricted by societal norms.

Mores

Strongly held norms or customs considered vital to the functioning of a society, often embodying its moral views and principles.

Folkways

Norms for routine or casual interaction that guide everyday behavior in society, but whose violation is not considered serious.

Negative Sanctions

Penalties or punishments imposed to enforce conformity to social norms, aiming to discourage unacceptable or deviant behavior.