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Major Types of Foreign Exchange Risks

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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?

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The solution discusses major types of foreign exchange risk.

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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 ...

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