--%>

Transaction and Economic exposure

Define transaction exposure and explain how it is different from the economic exposure?

E

Expert

Verified

Transaction exposure is the sensitivity of realized domestic currency values of the firm’s contractual cash flows denominated in the foreign currencies to unexpected changes in exchange rates. Unlike the economic exposure, transaction exposure is properly defined and short-term.

   Related Questions in Financial Accounting

  • Q : What is Treasury bills What is Treasury

    What is Treasury bills? What did they do?

  • Q : Define Expenditures Define Expenditures

    Define Expenditures with suitable example?

  • Q : State Return on Investment or ROI

    Return on Investment (ROI): It is a performance measure employed to calculate the efficiency of an investment or to compare the effectiveness of a number of various investments. To compute ROI, the advantage (return) of an investment is divided by the

  • Q : Firms attaining the U.S. firms

    Presently, several foreign firms from both the developed and developing countries attained high-tech U.S. firms. What would have motivated these firms in order to attain the U.S. firms?

  • Q : Income Tax and Investment Calculator

    Introduction Your task is to produce a Java program, which can calculate income tax and investment growth based on the yearly income/salary of an individual. Below the details are descr

  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?

  • Q : Architectural Symbolism-house-style

    Wriet a report on the term Architectural Symbolism:a study of house-style meanings ?

  • Q : Super Profit Method in Goodwill Super

    Super Profit Method: (Goodwill method): When a firm earns huge profit in comparison to normal profit (usually earned by other firms of similar industry) then the difference is termed as Super Profit. Goodwill is computed on the basis

  • Q : Define status and role Define status

    Define status and role, explain the difference between the two, provide illustrations.

  • Q : Define Income Statement How to do

    How to do income statement = from the revenues we will deduct all the expenses related to that period to get the income or loss. When the revenues are more than the expenses then it is income and when the expenses are more than the revenues then it is