Lazer Co Is a U

question 76

Multiple Choice

Lazer Co. is a U.S. firm that exports computers to Belgium invoiced in euros and to Italy invoiced in dollars. Additionally, Lazer Co. has a subsidiary in Korea that produces computers in South Korea and sells them there. Lazer also has competitors in different countries. Lazer Co. is subject to:

• A) transaction exposure.
• B) economic exposure.
• C) translation exposure.
• D) all of the above.

---

Definitions:

Population

The total number of inhabitants of a particular town, area, or country.

Annual Growth

The yearly percentage increase in the size or value of an economic variable, such as gross domestic product or a company's revenue.

Redemption Value

The amount due to an investor once a bond or other debt instrument reaches its maturity date.

CSB

Canadian Savings Bonds, a secure savings product issued and guaranteed by the Government of Canada.