A US MNE borrowed INR$1.75 million from an Indian bank to pay an Indian creditor when the exchange rate was INR68.84/US$. The US MNE agreed to repay the principal and 4.5% interest in one year. The loan was repaid in Indian rupee at maturity when the exchange rate was INR70.91/US$. What is the US MNE's foreign exchange gain or loss on the credit arrangement at the end of the year? O $742.10 gain O $742.10 loss O $0 O $362.25 loss 0 $362.25 gain BA Suite Limited is the French subsidiary of CFR Winery, a US MNE. CFR's home reporting currency is the US$. BA Suite's December 31 Balance Sheet is shown below. At the date of this balance sheet the exchange rate between the French franc and US$ was FRF5.88/US$. The company's equity has an historical exchange rate of FRF5.75/US$. What is the translation gain or loss? Assets Liabilities and Net Worth Cash FRF20,000,000 Accounts Payable FRF100,000,000 Accounts Receivable 50,000,000 Long term Debt 200,000,000 Inventory 70,000,000 Net Plant and Equipment 250,000,000 Invested Capital 90,000,000 390,000,000 390,000,000 $346,051 translation gain O $320,152 translation loss O $320,152 translation gain $346,051 translation loss Question 15 2.5 pts Which of the following scenarios would not give rise to foreign exchange risk? O A US MNE purchases inventory on credit from a German supplier and must pay in euros. O A US MNE sells inventory to a Mexican customer and will receive payment in pesos. O A US MNE purchases equipment from a Canadian supplier and must pay in US dollars. O A US MNE borrows swiss francs and must repay in swiss francs. O A US MNE will receive repayment on a loan to a Rritish borrower in British pound sterling