Operating exposure reflects the impact on the short-run viability of a foreign business when unexpected exchange rates move against the domestic company.

Question

Quizplus · Accepted Answer

Operating exposure, also known as economic exposure, refers to the impact of exchange rate fluctuations on a company's future cash flows and long-term financial health, rather than just its short-run viability.

Operating Exposure Reflects the Impact on the Short-Run Viability of a Foreign