Difference between transaction and economic exposure. Introduction: Economic exposure and transaction exposure are the significant risks encountered in the foreign exchange. Economic exposure occurs due to the changes in overall economic conditions. Transaction exposure is the risk that occurs from the exchange rate changes or price changes.

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Chapter 23, Problem 11CRCT

Summary Introduction

To discuss: Difference between transaction and economic exposure.

Introduction:

Economic exposure and transaction exposure are the significant risks encountered in the foreign exchange. Economic exposure occurs due to the changes in overall economic conditions. Transaction exposure is the risk that occurs from the exchange rate changes or price changes.

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