Pls . define FCY risk and credit risk for a company . Pls. briefly explain through the following example whether the company would carry any FCY risk and credit risk or not . ( 30 points )

A company is buying all rawmaterials required for production through imports from Italy in Euro terms ( that makes 80 % of the cost of the goods sold and the cost of the goods sold makes 90% of total sales , leaving the company with a gross profit margin of 10 % ) the production process takes 20 days and then all finished goods are only sold to the buyers in the local market in Turkey. The invoice issued by the company to the local market is in TL terms whereas the supplier of the company in Italy issues his invoice to the company in Euro terms. The due date of payment written in his suppliers invoice is 60 days . He expects to collect his receivables from the buyers in 60 days too .