5. Exchange rate risk: a. Diamond Corp. imports machinery that it sells in the United States. Diamond's contract with the Norwegian producer requires Diamond to pay a fixed Norwegian kroner price. Diamond competes with Norwegian firms that export to the United States. These firms price their exports in U.S. dollars. Discuss Diamond's transaction, economic, and translation exposure. b. Mortenson, a U.S. based firm, has a subsidiary in Norway that produces and sells machinery in Norway. The subsidiary is financing growth using a Norwegian kroner loan. Would Mortenson's exposure to exchange rate risk be more or less if the Mortenson uses its own funds to finance the subsidiaries growth? Explain your answer. 5. Exchange rate risk: a. Diamond Corp. imports machinery that it sells in the United States. Diamond's contract with the Norwegian producer requires Diamond to pay a fixed Norwegian kroner price. Diamond competes with Norwegian firms that export to the United States. These firms price their exports in U.S. dollars. Discuss Diamond's transaction, economic, and translation exposure. b. Mortenson, a U.S. based firm, has a subsidiary in Norway that produces and sells machinery in Norway. The subsidiary is financing growth using a Norwegian kroner loan. Would Mortenson's exposure to exchange rate risk be more or less if the Mortenson uses its own funds to finance the subsidiaries growth? Explain your