CASE STUDY Tersang Manufacturing Berhad, a manufacturer of components, has signed a contract to purchase electronic component for its production line. The company opts to purchase the equipment either from the United States or Japan. Both the United States and Japan suppliers have agreed with the following terms; Tersang Manufacturing Berhad would forward a contract to defer the payment to avoid foreign exchange risk for all the credit transactions. The exchange rates for currencies are given below. Based on the above information, please answer the questions below. 1. Briefly explain the type of international trade financing involves in this contract and how it benefits the importer? 2. Briefly explain the FOREX exposures that might do the Tersang Manufacturing Berhad face? How the forward contract benefits the importer and exporter? 3. Using the provided foreign exchange quotations, determine which suppliers Tersang Manufacturing Berhad should sign the contract. Show your calculations in Ringgit Malaysia (RM) and decide which country to import the electronic component. 4. How could the supplier (the chosen supplier either from the United States or Japan) protect themselves from credit risk from the importer (Tersang Manufacturing Berhad)