Translation exposure reflects:

Question

Quizplus · Accepted Answer

Translation exposure reflects the exposure of a firm's financial statements to exchange rate fluctuations. This occurs when a company has subsidiaries or operations in foreign countries and has to translate the financial statements of those operations into the reporting currency of the parent company. Fluctuations in exchange rates can affect the value of assets, liabilities, and earnings of the foreign operations, and in turn, can affect the consolidated financial statements of the parent company.

Translation Exposure Reflects