Explore BrainMass

Explore BrainMass

    Major Types of Foreign Exchange Risks

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are the major types of foreign exchange risks?

    How are these risks hedged or mitigated... and what benefits do firms gain from hedging activities?

    Can you help me get started on this assignment?

    © BrainMass Inc. brainmass.com September 29, 2022, 1:41 pm ad1c9bdddf
    https://brainmass.com/business/international-finance/major-types-foreign-exchange-risks-297236

    Solution Preview

    Answer:
    What are the major types of foreign exchange risks? How are these risks hedged or mitigated and what benefits do firms gain from hedging activities?
    Mainly there are two types of foreign exchange risk:
    (i) Economic Exposure (risk)
    (ii) Accounting Exposure (risk)

    Economic exposure: Economic exposure is the type of foreign exchange risk that arises due to ...

    Solution Summary

    The solution discusses major types of foreign exchange risk.

    $2.49

    ADVERTISEMENT