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4) A) Explain the currency transaction exposure and give an example: B) Explain the currency operation exposure and give an example: 5) A US company

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4) A) Explain the currency transaction exposure and give an example: B) Explain the currency operation exposure and give an example: 5) A US company designs its products in the US but manufactures those products in Mexico. You have concern about the Mexico Peso may appreciate in value. A) Explain what kind of exposure the company faces in Mexico. B) If Peso increases in value vs USD, what's the risks for the company? C) List three strategies to hedge these potential risks in Mexico

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