Explain transaction exposure, Financial Management

How would you explain transaction exposure? How is it different from economic exposure?

Answer:Transaction exposure is the sensitivity of comprehend domestic currency values of the firm's contractual cash flows that is denominated in foreign currencies to not expected changes in exchange rates. Different from the economic exposure, transaction exposure is well-defined and short-term.

Posted Date: 5/10/2013 3:22:47 AM | Location : United States







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