Answer Happy

A U.S. firm has a division in Mexico. If Mexico's currencyappreciates, the U.S. firm's sales in Mexico will experience
positive translation exposure
negative transaction exposure
positive transaction exposure
negative translation exposure
Under which of the following scenarios would an internationalinvestor always win?
stock price decrease; currency depreciates
stock price increase; currency depreciates
stock price increase; currency appreciates
stock price decrease; currency appreciates