Purchase Solution

Translation, Transaction and Economic Exposure

Not what you're looking for?

Ask Custom Question

What are the different issues involved with translation exposure, transaction exposure and economic exposure? How can companies plan to mitigate the risk of each? What are the opportunity costs associated with measures to mitigate this risk?

Purchase this Solution

Solution Preview

The major issue involved with translation exposure is that an organization's assets may decrease in value if there is a change in the exchange rate that is detrimental to that organization. Companies can plan to mitigate the risk of translation exposure by carefully monitoring the exchange rates and statistically calculating the probability of changes in the exchange rates in the future, and engaging in transactions more heavily when the exchange rates are more favorable for the organization. The major issue involved with transaction exposure is the fact that if the currency exchange ...

Solution provided by:
Education
  • Criminal Justice, Elizabeth City State University
  • Master of Public Administration, North Carolina Central University
Recent Feedback
  • "Excellent work, from the time of my post to the time I received a response was days ahead of my requirements. "
  • "Great, Thank You for our Help!!"
  • "Excellent, thank you "
  • "Thank you"
  • "Thank you!"
Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Operations Management

This quiz tests a student's knowledge about Operations Management

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Introduction to Finance

This quiz test introductory finance topics.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.