Mr$.$ Feldstein is concerned about GM$$s foreign exchange exposure. In particular he is focused on operating exposure. Why is he not as concerned with the other two $($transaction and translation exposure$)?$ Does his standpoint make sense? Why?

$2.(3$ points$)$ Consider the following three exposures mentioned in the case:

$($i$)$ A yen commercial exposure based on forecasted receivables less payables of $$900$ million

$($ii$)$ An investment exposure resulting from equity stakes in several Japanese companies

$($iii$)$ A financing exposure through a yen$-$denominated bond issue resulting in $$500$ million worth of outstanding yen$-$denominated bonds

For $($i$)-($iii$),$ what type of exposures are these? Explain. How are $($i$)-($iii$)$ affected by movements in the exchange rate? If the exchange rate moves from $117$ Yen$/$USD to $111$ Yen$/$USD$,$ how do the exposures in $($i$)-($iii$)$ affect GM$?$