Recognize Exposure to Exchange Rate Risk: Recall that when you created your business idea, it was assumed that your receivables would be denominated in the foreign currency of concern upon the sale of your products. Describe your exposure to exchange rate risk. That is, describe the exchange rate conditions affecting the performance of your business. Is your business subject to transaction exposure? Economic exposure? Translation exposure? Explain why your business is or is not subject to each of these types of exposure.