1.Instead of exporting cars from the US, if Tesla decides to set up a plant in Australia to produce cars to be sold in t

[answerhappygod]

1.Instead of exporting cars from the US, if Tesla decides to set
up a plant in Australia to produce cars to be sold in the
Australian market:
A) This increases exposure to exchange rate risk
B) This reduces exposure to exchange rate risk
C) Has no effect on its exposure to exchange rate risk
2.Which of the following statements is most likely to be TRUE
regarding a currency's price if the supply of the currency
increases?
A) The price of the currency fluctuates randomly.
B) The price of the currency remains constant.
C) The price of the currency lowers.
D) The price of the currency increases.
D) It engages in a form of financial hedging
3.Which of the following terms refers to the price of one
currency expressed in terms of another?
A) countertrade
B) monetization
C) credit derivative
D) exchange rate