Blooming Cout Inc. (BC), a U.S-based firm, who produces aluminum and
stainless kitchen appliances, has newly set up a subsidiary in Indonesia. Recently, the unexpected volatility of foreign exchange rates has triggered the concern of BC on its operating exposure. It is commonly asserted that the unpredictable exchange rate changes would result in operating exposure; however, the predictable changes in exchange rate would not. Do you agree on
this statement? Comment.