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Pfizer operating in over 100 countries around the world, they conduct their financial operations in many currencies. Talk about the accounting exposure from their global operation.

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Pfizer operating in over 100 countries around the world, they conduct their financial operations in many currencies. Talk about the accounting exposure from their global operation.

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Accounting exposure, also known as translation exposure, occurs due to exposure of company's operations to multiple currencies. As Pfizer operates in multiple nations across the world via its numerous subsidiaries, it is heavily exposed to translation exposure as exchange rate of currencies of different nations across the world where Pfizer operates fluctuates against US dollar, ie, the currency of the Pfizer's domestic country.

As Pfizer operates both revenue as well as cost centers across the world, its profitability and revenues can be significantly affected due to translation exposure. For example, Pfizer sells its products in multiple countries across the world. Now, the revenue arising from such sales, when converted to US dollars can significantly decline if US dollar moves in the adverse direction ...

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