Q-1: Current effects on cash flows: How should appreciation of a firm's home currency generally affect its cash inflows? How should depreciation of a firm's home currency generally affect its cash outflows?

Q-2: Transaction exposure: Fisher, Inc. export products from Florida to Europe. It obtains supplies and borrows funds locally. How would appreciation of the euro likely affect its net cash flows? Why?

Q-3: Exposure of domestic firms: Why are the cash flows of a purely domestic firm exposed to exchange rate fluctuations?

Q-4: Factors that affect a firm's translation exposure: What factors affect a firm's degree of translation exposure? Explain how each factor influences translation exposure.

q-5: Translation exposure: Consider a period in which the U.S. dollar weakens against the euro. How will this affect the reported earnings of a U.S. based MNC with European subsidiaries? Consider a period in which the U.S. dollar strengthens against most foreign currencies. How will this affect the reported earnings of a U.S. based MNC with subsidiaries all over the world?

Note: I need briefly discussion of above questions.