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Defined translation exposure and transaction exposure

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Define translation exposure and transaction exposure. How do these risks affect a manufacturing organization considering expansion to India or Brazil.

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Define translation exposure and transaction exposure. How do these risks affect a manufacturing organization considering expansion to India or Brazil.

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Translation exposure or accounting exposure is the chance of a company's liabilities, equities, income and or assets will lower in value because of exchange rates. It happens when exchange rates become less favorable and the company has already put changed some assets into the currency

Transaction exposure is the negative ...

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