transaction exposure relates to the risk of exchange rate movements relating to current investments. In other words investments which are already contracted for. Economic exposure relates to the risk associated with exchange rate movements which may affect future cash flows.
Both exposures deal with changes in expected cash flows. Transaction exposure deals with changes in near-term
cash flows that have already been contracted for (such as foreign currency accounts receivable, Accounts Payable,
and other debts). Operating exposure deals with changes in long-term cash flows that have not been contracted
for but would be expected in the normal course of future business. One might view operating exposure as
"anticipated future transactions exposure," although the concept is broader because the impact of the exposure
might be through sales volume or operating cost changes.
Given a known exchange rate change, the cash flow impact of transaction exposure can be measured precisely
whereas the cash flow impact of operating exposure remains a conjecture about the future.
ice cream
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compane and contnast the diffearence typcs of economic sys tem
Compare and contrast competition in traditional markets with that in digital markets?
fruit is yummy
Sale of goods... is a single transaction. Once the customer pays for the goods - s/he is free to leave the store, and the item(s) belong(s) to the customer outright. Hire purchase... is an ongoing transaction. The customer signs an agreement to pay for the goods over a period of time. Although the customer is free to take the goods from the shop, the goods are the property of the business until the final instalment has been paid.
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compane and contnast the diffearence typcs of economic sys tem
ok
Compare and contrast it with what?
1. Compare 2. Contrast
compare is when you compare two things that are the same and contrast is when you compare two things that are different.
compare and contrast between triangles and a trapezoid
compare and contrast the lakes,wetland and rivers?
Compare.
compare and contrast theory of emotion
The answer depends on what you wish to compare and contrast it with.
compare & contrast the similarities & differences of a relation & function