In most international transactions, one of the parties has to bear transaction exposure.

Question

Quizplus · Accepted Answer

In international transactions, transaction exposure arises due to the risk of exchange rate fluctuations between the time a deal is agreed upon and the time it is settled. Typically, one of the parties involved will bear this risk, depending on the agreed currency for the transaction and the direction of the currency movement.

In Most International Transactions, One of the Parties Has to Bear