--%>

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 : What is Purchase What is Purchase .

    What is Purchase. Briefly state the definition of it?

  • Q : Case study of a hospitals Radiology

    The typical mid-sized hospital trying to keep its head above water in the increasingly tight health care market. It has determined that a critical area for it in today’s market is customer service. Until eight or nine years ago, hospital’s had a reputation

  • Q : What are Impersonal accounts What are

    What are Impersonal accounts and how it is classified?

  • Q : Cash flows from operating activities A

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

  • Q : Evaluation of discount and premium

    Describe how discount and premium are evaluated whenever the assets are priced-to-market. When would law of one price prevail within the international capital markets in case foreign equity ownership restrictions are imposed?

  • Q : Describe Short Holding Period Describe

    Describe Short Holding Period briefly with suitable example?

  • Q : Proceeds on disposal The following

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

  • Q : Characteristics of international and

    Explain characteristics of the international and the domestic banks.

  • Q : What is the equivalent rate A bank

    A bank quotes an interest rate of 13.5% per annum with quarterly compounding. What is the equivalent rate with (a) continuous compounding and (b) annual compounding?