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A Canadian firm sells its products in the domestic market only, therefore, there is no transaction risk involved in its business. However, the company revenues

A Canadian firm sells its products in the domestic market only, therefore, there is no transaction risk involved in its business. However, the company revenues went down in the domestic market since the Canadian Dollar appreciated against US Dollar. What type of exposure this scenario exemplifies?

a.

Operating exposure

b.

Translation exposure

c.

Asset exposure

d.

Transaction exposure

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