In the following cases, state which type of exchange rate risk the company is facing and whether

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In the following cases, state which type of exchange rate risk the company is facing and whether this risk is beneficial or harmful in nature.

(a) A power-generating company imports coal from Germany, purchasing the coal in euros. The company is expecting the pound to weaken against the euro over the next few months.

(b) A UK toy company supplies only the domestic market. Its only major competitor in this market is a US toy company. The pound is expected to weaken against the dollar over the next year.

(c) A UK company has bought a factory in France, financing the purchase with sterling borrowing. Over the next year the pound is expected to appreciate against the euro.

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