Net Asset Position Tropic Corporation discloses in its financial statements that it has an exposed asset position in a subsidiary located in another country:

a. What foreign currency risks has the company assumed as a result of its investment?

b. How can a decision maker assess the riskiness of a company’s exposed asset position in another currency?

c. Why might the cumulative translation adjustment reported in Tropic’s consolidated balance sheet not represent the amount Tropic would realize as a gain or loss if it sold its ownership of the subsidiary?