Which of the following refers to the overall impact of exchange rate changes on the value of a firm?

Question

Quizplus · Accepted Answer

Economic exposure refers to the overall impact of exchange rate changes on the value of a firm, including its future cash flows, market share, and competitiveness. Transaction exposure refers to the impact of exchange rate changes on specific transactions, while translation exposure relates to the translation of foreign currency financial statements into the reporting currency. Interest rate parity exposure refers to the impact of interest rate differentials on exchange rate movements.

Which of the Following Refers to the Overall Impact of Exchange