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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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