--%>
Assignment Help - homework help

Determinants of operating exposure

Describe determinants of the operating exposure.

E

Expert

Verified

 Main determinants of the firm’s operating exposure are as follows:

a) Structure of the markets in which the firm sources its inputs, like sells its products, and labor and materials

b) Ability of the firm in order to mitigate the effect of exchange rate changes by adjusting its markets, sourcing, and product mix.

   Related Questions in Financial Accounting

  • Q : Case study of Drug free at Monochem

    Read the case study entitled ‘Drug-Free and Alcohol-Free at Monochem, Inc. and answer the following questions. 1) Suppose John has developed the ethical codes for the company with an objective of creating a d

    		•
  • Q : What is Liability Management Liability

    Liability Management: The procedure by which financial institutions balance outstanding liabilities, like deposits, CDs, and so on, with suitable liquidity reserves. Banks and other lenders employ liability management to decrease liquidity risks and u

    		•
  • Q : Challenges of friendships How is

    How is friendship differing from other relationships? Explain the challenges of friendships. What are the common expectations for friendships – give an illustration of each. Explain how friendships fluctuate ove

    		•
  • Q : Calculating Average Cost 1 You're

    1 You're trying to save to buy a new $200,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 2 Although appealing

    		•
  • Q : Pricing spill-over effect Discuss

    Discuss pricing spill-over effect.

    		•
  • Q : Sharpe performance measure concept

    Explain the Sharpe performance measure concept.

    		•
  • Q : Explain international Fisher effect

    Explain and also derive international Fisher effect.

    		•
  • Q : Separately-priced-items strategy

    Problem 1.  The manager of Joe's Menswear has noticed that over the past two holiday seasons their usual sales strategy of marking down prices has not been yielding the boost in revenues that it once did.  JM sell men's suits, dress shirts,

    		•
  • Q : Why teaching of accounting is not simple

    Why teaching of accounting is not simple. Illustrate this statement.

    		•
  • Q : Hedgers and Speculators Explain hedgers

    Explain hedgers and speculators are two types of economic agents required for a derivatives market to function.

    		•