"Ford Motor actively manages its foreign exchange exposure. In some countries (e.g., Europe, Japan, and Australia) it bills in the local currency and converts its net revenue to US dollars monthly. In other countries (e.g., Latin America, Eastern Europe, and Southeast Asia) it bills in US dollars, hopefully to avoid any foreign exchange exposure." a) Based on the above information, compare and contrast the foreign exchange exposure of Ford between billing in local currency and billing in US dollars. (7 marks) If Ford hedged the foreign exchange risk discussed in part (a) by using derivatives sold by a bank, what could be the possible impact on its financial risk exposures? (8 marks) "Ford Motor actively manages its foreign exchange exposure. In some countries (e.g., Europe, Japan, and Australia) it bills in the local currency and converts its net revenue to US dollars monthly. In other countries (e.g., Latin America, Eastern Europe, and Southeast Asia) it bills in US dollars, hopefully to avoid any foreign exchange exposure." a) Based on the above information, compare and contrast the foreign exchange exposure of Ford between billing in local currency and billing in US dollars. (7 marks) If Ford hedged the foreign exchange risk discussed in part (a) by using derivatives sold by a bank, what could be the possible impact on its financial risk exposures? (8 marks)