Which of the following statement(s) is/are true?(Select the correct answer from the options below the statements) (1) Invoicing in home currency means risk is not avoided but merely transferred to the customer (2) Invoicing in home currency may harm competitive advantage (3) Invoicing in home currency is a form of mitigating against transaction risk (1), (2) and (3) (1) only (1) and (2) (1) and (3) Managed guest session - Ih herts,ac.uk manages this device and has ac...

## Step 1: The question stems from a comprehensive understanding of International Trade Finance. Companies trading overseas face many risks, one of them is transaction risk due to exchange rate volatility. Firms often use several techniques to mitigate these risks. ## Step 2: Let’s analyse each provided statement:(1) Try to understand that when norms dictate invoices are in a home currency, risk isn't avoided but transferred to customers. By invoicing in home currency, a business is effectively asking its customers to bear the exchange rate risk. The risk hasn't disappeared but rather just shifted from the business to the customer. (2) In accordance with invoicing in home currency negatively affecting competitive advantage: Considering the previous explanation, if a firm chooses invoicing in its home currency, whereas its competitors are flexible on this aspect depending on their customers' preferences, it may harm the firm's competitive advantage.### (3) Reviewing Invoicing in home currency as a step to lower transaction risk - As explained in the first statement, invoicing in home currency is a way of transferring rather than mitigating transaction risk. The firm itself is shielded from the risk but at the expense of its customers abiding it, which doesn't equate to reducing or mitigating overall transaction risk.### ## Step 3: Combining all the above deductions, the statements (1) and (2) are true, while (3) is not true. Looking at options, we can hence validate that the option \('(1)\ and\ (2)'\) is the correct answer.