You are negotiating the purchase of textile machinery either from a German supplier or a Japanese supplier. The German supplier is prepared to sell you fully automated looms at a price of 20,000 Euros per loom. Payment will be made in Euros at the time of delivery, which is promised for one month hence. The Japanese supplier wou
Please be as detailed as possible: A) Define foreign exchange exposure for a firm. Is a purely domestic firm subject to some foreign exchange exposure? If yes, why? B) What are the key differences among economic exposure, transaction exposure, and translation exposure?