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Economic Exposure
What does it mean?
The affect that fluctuating exchange rates have on a company's earnings, cash flow and foreign investments.
In Other Words...
Most large companies attempt to minimize the risk of fluctuating exchange rates by hedging with positions in the forex market. Companies that do a lot of business in many countries, such as import/export companies, are at particular risk for economic exposure.
Related Links
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Related Terms
Exchange Rate | Forex | Hedging | Reporting Currency
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