--%>

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 : Explain Return on Assets or ROA Return

    Return on Assets (ROA): It is an indicator of how gainful a company is associative to its net assets. ROA provides an idea as to how proficient management is at employing its assets to produce earnings. Computed by dividing a company's annual earnings

  • Q : What is forfaiting transaction What is

    What is meant by the forfaiting transaction?

  • 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 : Canadian Outdooring Explain Canadian

    Explain Canadian Outdooring in brief ?

  • Q : Representative office of any bank

    Explain what is meant by the Representative office of any bank.

  • Q : Merits of Budgetary Control Write down

    Write down the merits of Budgetary Control?

  • Q : Fundamenetal Issues on Management

    1.  Somerset Ltd manufactures components for the motor industry. In one of its workshops it has three workers, Joe, Jack and Jonny, who at any one time work on batches of the same component. The standard time allowed to produce one unit is one hour. The workers rate of pay is

  • Q : What is Asset Management Asset

    Asset Management: The Asset management has two common definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, an advisor or financi

  • Q : Define Sole Trade Define Sole Trade in

    Define Sole Trade in brief?

  • Q : Review the accounting cycle the

    Assignment: The purpose of this assignment is to review the accounting cycle--the procedures that businesses normally use to record transactions during the year and prepare financial statements at the end of the year.  The accounting cycle is discussed in Chapter 3 of your textbook. &nb