Question: Identify whether the following create substantial transaction, operating, and/or translationexposure (or no exposure at all) for a U.S. company, and how the company will be

Identify whether the following create substantial transaction, operating, and/or translationexposure (or no exposure at all) for a U.S. company, and how the company will be affected if theforeign currency depreciates. The examples will typically create more than one type of exposure.

D) Widgets International (WI) purchases a British factory, financed by issuing dollar debt and swapping for pound-denominated debt. WI is expecting a steady stream of pound revenues from the factory. FASB 8 is in effect.

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