Economic exposure is distinct from transaction exposure,which is concerned with the effect of exchange rate changes on individual transactions,most of which are short-term affairs that will be executed within a few weeks or months.

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Economic exposure is concerned with the long-run effect of changes in exchange rates on future prices,sales,and costs.This is distinct from transaction exposure,which is concerned with the effect of exchange rate changes on individual transactions,most of which are short-term affairs that will be executed within a few weeks or months.

Economic Exposure Is Distinct from Transaction Exposure,which Is Concerned with the Effect