In a 400 to 500 words Microsoft Word document, please respond to the following questions:

1) What factors affect a firm's degree of transaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure.

2) Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract.

Your paper must include at least one external reference (in addition to your book). Refer to the Writing Assignment Grading Criteria for assignment requirements in content, organization, writing style, grammar and APA 6.0 format.

Your paper will be automatically submitted to Turnitin in the assignment dropbox. Originality reports will be returned to the faculty and student. Multiple submissions are allowed. For full credit, make sure that your Similarity Index does not exceed 25%. Refer to the following links for APA guidelines.