As opposed to transaction exposure, managing economic exposure involves developing a(n) ____ solution.

Question

Quizplus · Accepted Answer

Economic exposure involves the long-term risk of changes in exchange rates impacting a company's future cash flows and competitiveness. Therefore, managing economic exposure requires developing a long-term solution that considers factors such as hedging, diversification, and strategic planning. Short-term or immediate solutions may not be effective in managing economic exposure.

As Opposed to Transaction Exposure, Managing Economic Exposure Involves Developing