1. Biopharm Australia has attempted to capitalise on new opportunities to expand in South Asia. The production costs in most South Asian countries are very low, often less than one-fourth of the cost in India or Bangladesh. Furthermore, there is a strong demand for drugs in South Asia. Biopharm Australia penetrated South Asia by purchasing a 60per cent stake in Square Pharmaceutical, a Bangladeshi company that produces drugs. 2. Should Biopharm Australia finance its investment in the Bangladeshi company by borrowing Australian dollars from an Australian bank that would then be converted into Bangladeshi taka, or by borrowing Bangladeshi taka from a local Bangladeshi bank? What information do you need to know to answer this question? b. How can borrowing Bangladeshi taka locally from a Bangladeshi bank reduce the exposure of Biopharm Australia to exchange rate risk? c. How can borrowing Bangladeshi taka locally from a Bangladeshi bank reduce the exposure of Biopharm Australia to political risk caused by government regulations