Orlando Co. produces home appliances and sells them in the U. S. It outsources the production of the appliances to a Chinese manufacturer, and the imported appliances are priced in dollars. Its major competitor for appliances is located in Mexico. Based on this information, Orlando Co. is subject to exposure. a. translation b. economic c. economic and transaction d. transaction

The correct answer is letter "B": economic.

Explanation:

Economic exposure takes place as the risk of fluctuations in foreign currency exchanges. The highest the volatility of the currency the higher the economic exposure of the firm and vice versa.

The fluctuations can bring losses to the company as a result of changing from foreign to domestic currency moreover when part of the operational processes of the firm are handled in a country with a different currency.

b.

c.

d.

g.

those r all of them i believe

answer; no individual buyer or seller has any significant impact on the market price;