ABC plcacquired the ninth largest steel producer of the world in an all-cash deal of 2.15 billion and this acquisition catapulted ABC plc from the 56th largest steel producer in the world to 6th largest steel producer in the world. Manager Janet believes It is because of the synergy.

One of the main tasks of this division is to evaluate the performance of the existing subsidiary in south east Asia and any other opportunity. During your time in this division, you were asked to help the restructuring team to evaluate performance of the subsidiary along with the risk and the methods to overcome those risks.

a)Critically explain the term "Synergy" used by manager Janet.

b)Discuss with example, what are the risks related to foreign currency exposure and how these could impact ABC Plc as it is involve in global trading, now and in the future.

c) Briefly explain two methods that could be used by ABC Plc to forecast future exchange rates and discuss the limitation of the forecast that ABC Plc needs to be aware off.