Q No. 4: Evaluate the following statements and answer the questions: a. A Country is always worse off when its currency is weak (falls in value). Is this statement true, false or uncertain? Explain your answer. (2 marks) 3

b) If the Pakistani government unexpectedly announces that it will be imposing higher tariffs on foreign goods one year from now, what will happen to the value of PKR today? (2 marks)

c. Understanding regarding Translation and transaction exposure is considered important for the management of Foreign Exchange Risk. Compare and contrast the two kinds of exposures i.e. Translation and transaction Risk. (3 marks)

Subject is Corporate finance answer require immegiately