Is midwestern loan to lasertech exposed to exchange risk


Please assist with the given problems about international business risk.

Midwestern Bank has lent $10 million to finance an equipment sale to Thailand by Lasertech, a major exporter located in Michigan. Both the loan and the sale are priced in U.S. dollars.

1) Is Midwestern's loan to Lasertech exposed to exchange risk? Explain.

2) Suppose Midwestern has lent money to Lasertech secured by the general credit of the company. Are these loans exposed to exchange risk? Explain.

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