Economic exposure is the impact on the value of a firm's operations of unanticipated exchange rate changes.

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Economic exposure, also known as operating exposure, refers to the effect that unexpected changes in exchange rates can have on the value of a firm's future cash flows and, consequently, on its market value. This type of exposure goes beyond transaction exposure, which is related to actual financial transactions, to encompass the broader impact on a firm's competitive position and market value.

Economic Exposure Is the Impact on the Value of a Firm's