The Following Table Summarizes the Facts of Five Independent Cases

question 6

Essay

The following table summarizes the facts of five independent cases (labeled a through e) of American companies engaging in credit transactions with foreign corporations while the foreign exchange rate is fluctuating:
Instructions
After evaluating the information about each case, fill the blank space that has been left in one of the four columns denoted by a yellow color. The content of each column and the word or words that you should enter in the blank spaces are described below:
Column 1 indicates the type of credit transaction in which the American company engaged with the foreign corporations. The answer entered in this column should be either "Sales" or "Purchases."
Column 2 indicates the currency in which the invoice price is stated. The answer may be either "U.S. dollars" or "Foreign currency."
Column 3 indicates the direction in which the foreign currency exchange rate has moved between the date of the credit transaction and the date of settlement. The answer in this column may be either "Rising" or "Falling."
Column 4 indicates the effect of the exchange rate fluctuation upon the income of the American company. The answers entered in this column are to be selected from the following: "Gain," "Loss," or "No effect."
$$\begin{array} { | c | c | c | c | c | } \hline&&{ \text { Column } } \\\hline & \text { Type of Credit } & \text { Currency Used in } & \text { Exchange Rate } & \text { Effect on } \\\hline & \text { Transaction } & \text { Contract } & \text { Direction } & \text { Income } \\\hline \text { Case } & 1 & 2 & 3 & 4 \\\hline & & & & \\\hline \text { (a.) } & \text { Sales } & \text { Foreign currency } & \text { Falling } & \\\hline \text { (b.) } & \text { Purchases } & \text { U.S. dollars } & \text { Rising } & \\\hline \text { (c.) } & & \text { Foreign currency } & \text { Rising } & \text { Loss } \\\hline \text { (d.) } & \text { Sales } & & \text { Falling } & \text { No effect } \\\hline \text { (e.) } & \text { Purchases } & \text { Foreign currency } & & \text { Gain } \\\hline & & & & \\\hline\end{array}$$

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Definitions:

Composition

The act of arranging or putting together elements to form a whole, often referring to writing, music, or art.

Reasonably Safe

A term describing a status of products or environments that are considered to have acceptable levels of risk, adhering to standard safety guidelines.

Warning Defect

A lack or inadequacy in the instructions or notices that come with a product, which fail to alert users to potential risks.

Product Liability

The legal obligation of manufacturers, distributors, suppliers, and retailers to compensate for injury or damage caused by defective products.