Question: 1. You've heard your professor state that Translation risk and related Translation adjustments are accounting entries and may not be accorded much significance by some companies even if the dollar impacts are material. What is Translation risk and why might companies look at it differently?
2. Assume you are in the manufacturing business here in the US, and your Company exports the majority of its products overseas. Assume the US Dollar weakens against the currencies of the countries into which you sell your products. How might that impact your Company and why would that be so?