Chemtrin, a U.S. subsidiary located in Trinidad, exports 40 percent of its US$600 million in annual sales: 5 percent goes to Canada and 7 percent each to Japan, Britain, Germany, France, and Italy. It incurs all its costs in U.S. dollars, while most of its export sales are priced in the local currency. A How is Chemtrin affected by exchange rate changes? (3 marks) B Distinguish between Chemtrin transaction exposure and its operating exposure. (3 marks) C How can Chemtrin protect itself against transaction exposure? (1 marks) D What financial, marketing, and production techniques can Chemtrin use to protect itself against operating exposure? (8 marks) E Can Chemtrin eliminate its operating exposure by hedging its position every time it makes a foreign sale or by pricing all foreign sales in dollars? Why or why not? (3 marks)