Ciplack Inc. is a U.S. based company that specializes in the manufacturing of clothes, is considering expansion into South American. Labour costs in most South American countries are relatively low in comparison to France and the UK and a market survey conducted by the company, indicates a high demand for clothes in South America. Cieplack plans to enter the South American market by acquiring an 80% stake in Zera PL, a Brazilian firm that produces clothes. i. Identify four political and financial risk factors that may possibly affect the performance of the the company's subsidiary in Brazil. (2 marks) ii. How should the acquisition be financed to limit the exposure of Zera PL to exchange rate risk? (4 marks) iii. How can borrowing the Brazilian real from a Brazilian bank limit the subsidiary's exposure to political risk that may result from government regulations? (4 marks)