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A) A devaluation of the foreign currency of our affiliate usually creates a translation loss. Analyze 1) how we can hedge those probable losses by

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A) A devaluation of the foreign currency of our affiliate usually creates a translation loss. Analyze 1) how we can hedge those probable losses by a) a forward contract and b) a balance sheet hedge. Are those tools appropriate? Expound. 2) Is the accounting information resulting as a byproduct of a dep ciation of the foreign currency accurate? That is, is the translation loss, if it occurs, truthful? Elaborate in the context of a situation where the depreciation lasts 12 years and the affiliate sells most of its production to the US market, while it generates most of its expenses in, let us say, Nigerian nira. Specifically, elaborate on what really happens to the value of that affiliate? A) A devaluation of the foreign currency of our affiliate usually creates a translation loss. Analyze 1) how we can hedge those probable losses by a) a forward contract and b) a balance sheet hedge. Are those tools appropriate? Expound. 2) Is the accounting information resulting as a byproduct of a dep ciation of the foreign currency accurate? That is, is the translation loss, if it occurs, truthful? Elaborate in the context of a situation where the depreciation lasts 12 years and the affiliate sells most of its production to the US market, while it generates most of its expenses in, let us say, Nigerian nira. Specifically, elaborate on what really happens to the value of that affiliate

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