2. You are the chief financial officer of an MNC based in United States. Your production facilities are located in China, and you also have sales operations both in China and USA. What type of exposure would the following events cause to your company and what types of measures could you take to (a.) prevent them (b.) mitigate their negative effects?

   • USA increases tariffs to Chinese imports.

   • The companys debt is tied to 6-month LIBOR, which increases suddenly.