CORPORATE FINANCE (LL+CONNECT)
CORPORATE FINANCE (LL+CONNECT)
12th Edition
ISBN: 9781266427404
Author: Ross
Publisher: MCG CUSTOM
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Chapter 25, Problem 11CQ
Summary Introduction

To explain: The difference between transactions and economic exposure and which one can be easily hedged.

Economic Exposure:

In an era of globalization there is a lot that depends on foreign exchange, a company suffers from unexpected changes in foreign currency exchange rate which impacts the company’s cash flow, foreign investment and earnings.

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