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. EXPLAIN HOW A U.S. CORPORATION COULD HEDGE NET RECEIVABLES IN MALAYSIAN RI

In a 750 to 1,000 word Microsoft Word document in APA format, 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.