In Planning a business trip to Australia you have budgeted EUR 10,000 for expenses. The current exchange rate for EUR/USD is 1.1200 and for AUD/USD, it is 0.7500. (i) Calculate EUR/AUD cross-exchange rate (up to four decimal points). (ii) Using the cross-exchange rate calculated above, determine how much AUD you will have after exchanging your EUR 10,000 to AUD.

Expo-International Co. exports its products to multiple countries and earns revenues in various currencies. In recent months, there has been significant volatility in foreign exchange rates, particularly with the currency of one of its major markets, country Alpha. The currency of country Alpha has depreciated by 20% against Expo-International Co. & home currency. As a result, the revenue generated in country Alpha, when converted to home currency, has substantially decreased. Is it an example of transaction risk, economic risk, or translation risk? Explain briefly.