Create a unique hypothetical weighted average cost of capital (WACC) and rate of return. Recommend whether or not the company should expand, and defend your position.

“Transaction and Translation Exposure”

Please respond to the following:

From the case study, determine whether Blades’ financial position would be affected based on transaction, translation, or economic exposure. Provide one (1) example of the type of exposure that supports your answer. Justify your response.
From the case study, recommend whether Blades should import components from Japan to reduce its transaction exposure in the long run. Provide a rationale to support your response.