Answer:
translation exposure
Step-by-step explanation:
Translation exposure is also known as translation risk. In this type of risk, the value of a company's assets, equities, income, or liabilities change due to changes in the exchange rate,
French subsidiary received a lesser income last year, although payment will be adjusted in US dollars as per the contract.
Due to this, the subsidiary has a balance sheet loss, although the consolidated global result is positive.
This type of foreign exchange risk is known as translation exposure.