What factors create a balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet

Question:

What factors create a (or translation) exposure to foreign exchange risk? How does exposure compare with transaction exposure?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...