Specify accounting exposure, operating exposure, and transaction exposure

Specify accounting exposure, operating exposure, and transaction exposure. Determine the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed. Determine two types of hedges regarding foreign exchange risk in general and recommend the most advantageous risk mitigation strategy for XYZ, Inc. Provide support for your rationale. Determine the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Determine the fundamental differences in balance sheet exposure from the application of each method. Suggest the translation method that XYZ, Inc. should use to minimize balance sheet exposure. Provide support for your choice. Compare the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Determine the main similarities and differences between the two methods of translation. Assuming one of the subsidiaries of XYZ, Inc. is in a highly inflationary country, determine the appropriate translation method under FASB and provide the theoretical justification for your response.