1. You are the CFO of a Swiss firm purchasing a German firm for Euros. You have already signed a contract and will make payment and receive control of the firm in one month. You have incurred:
   1. Contingent exposure
   2. Operating exposure
   3. Translation exposure
   4. Transaction exposure
2. You are worried that the government of Anarchistan might expropriate the widget factory you are building there. Which one of the following actions would not be useful to alleviate this worry?
   1. Take out fronting loans
   2. Finance the project largely with locally raised debt
   3. Only use your facility there for final assembly, and keep the machinery and expertise needed for the difficult and interesting parts of widget making back in the US
   4. Raise capital for this project from several major international bank