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Forex question What is a foreign exchange exposure?
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Question by: Henry - 09 Oct 2014, 06:16:33
What is a foreign exchange exposure?
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Answer by: Joseph - 23 Jan 2015, 04:48:47

A type of foreign exchange exposure caused by the effect of unexpected currency fluctuations on a company’s future cash flows. Also known as operating exposure, economic exposure can have a substantial impact on a company’s market value, since it has far-reaching effects and is long-term in nature.

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