Translation exposure,also frequently called accounting exposure,refers to the effect that an unanticipated change in exchange rates will have on the

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Translation exposure refers to the impact of exchange rate fluctuations on a company's consolidated financial statements, which can affect the reported earnings and financial position of an MNC. This exposure arises from the need to translate the financial statements of foreign subsidiaries or branches into the reporting currency of the parent company.

Translation Exposure,also Frequently Called Accounting Exposure,refers to the Effect That