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Which of the following offers the best description of translation exposure? A. A UK parent company imports goods from overseas. Sterling weakens and imports become more expensive, thereby putting pressure on the company's margins. B. A UK parent company supplies to customers based soley in the UK. Sterling strengthens, which makes imports cheaper and therefore more attractive to the company's customers. C. A UK parent company takes out a loan in a foreign currency. The UK parent company must convert funds held in sterling into the foreign currency in order to meet its obligations to repay the loan. D. A UK parent company owns a subsidiary based overseas. The subsidiary's assets and liabilities are denominated in the currency of the country in which it operates, but must be stated in sterling for the purposes of consolidation into the UK parent's group accounts. |