When an enterprise has a receivable or payable denominated in a foreign currency and settlement of the obligation has not yet taken place, that firm is said to have __________ exposure.© BrainMass Inc. brainmass.com June 3, 2020, 7:34 pm ad1c9bdddf
Let us understand first of all different types of exposure:
It is the extent to which given exchanges rate change will change the value of foreign currency denominated transactions already entered into.
Translation (Accounting) exposure
The change in the value of a firm's foreign currency denominated accounts due to a ...
Your tutorial discusses the five kinds of exposure to help you know how to respond.