The extent to which the value of the firm is affected by unanticipated changes in exchange rates is called:

Question

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Economic exposure refers to the extent to which the value of the firm is affected by unanticipated changes in exchange rates. It is a measure of the impact of currency fluctuations on a company's overall competitiveness and profitability in the global marketplace. Economic exposure takes into account the long-term strategic implications of currency movements on a company's future cash flows, capital expenditures, and investments. It can have a significant impact on a firm's market position, profitability, and growth prospects.

The Extent to Which the Value of the Firm Is