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Economic Exposure |
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Economic Exposure The affect that fluctuating exchange rates have on a company's earnings, cash flow and foreign investments. Notes: Most large companies attempt to minimize the risk of fluctuating exchange rates by hedging with positions in the forex market. Companies that do a lot of business in many countries, such as import/export companies, are at particular risk for economic exposure.Economic exposure The extent to which the value of a firm will change because of an exchange rate change. |
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| Idelson charged that with the sanctions only amounting to $50 per day per affected patient, what the industry really wants is limiting their economic exposure from lawsuits. Does it make sense for these two companies -- each having an identical economic exposure to the other -- to manage their risks so differently? The vulnerability index is intended to measure the precariousness of States arising from their economic exposure, lack of protection and peripherality. |
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