Managing economic exposure is generally perceived to be ____ managing transaction exposure.

Question

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Managing economic exposure involves identifying and analyzing macroeconomic factors such as changes in interest rates, inflation rates, and exchange rates, and developing strategies to mitigate their impact on a company's overall financial performance. This requires a deeper understanding of the market and a long-term view, making it more complex than managing transaction exposure, which involves hedging against the risk of currency fluctuations in individual transactions.

Managing Economic Exposure Is Generally Perceived to Be ____ Managing