9. An economic exposure a. occurs when reporting systems are inadequate b. is the same as a transaction exposure c. occurs when the sourcing and costs of parts and componen d. is the same as a translation exposure ts change as exchange rates change 20. A hedgin g instrument that allows one to establish a fixed exchange rate for future transactions where delivery is required is a(n) a. opinion b. investment contract c. future spot contract d. forward contract 21. The principle by which the tax authorities allow firms to reduce their tax liability by the amount of income taxes paid to foreign governments is known as a. transfer pricing b. the tax credit c. lag strategies in tax planning d. passive income reductions