economic exposure

Economic exposure

The extent to which the value of a firm will change because of an exchange rate change.

Economic Exposure

The risk of loss that a company experiences when investing or operating abroad. That is, when a company has interests in more than one country, economic exposure is the risk that a change in the economy in one of the countries will negatively impact its investments or operations. Examples of economic exposure include the possibilities that exchange rates could fluctuate or that a government could defaults on its debt, which would affect the foreign currency. See also: Foreign-exchange risk.

economic exposure

see EXCHANGE RATE EXPOSURE.
References in periodicals archive ?
That the government is considering several bills aimed at improving small business cybersecurity, such as the Small Business Development Center Cyber Training Act, publicly acknowledges that these businesses represent a massive area of economic exposure and are in dire need of improvement.
Following the redemption of the structured instrument, completed with due board approvals, CIHL will have no further economic exposure to Anglo American plc shares.
Rod Antal, Alacers President and Chief Executive Officer, commented, The sale of our equity interest in the Gediktepe Project and the retention of an NSR allows Alacer to maintain low-risk commensurate economic exposure to the Projects success.
Insecurity in Balochistan with its port of Gwadar as a key CPEC node has prompted debate in China about the country's political and economic exposure in Pakistan.
In a regulatory filing after the close on Friday, Elliott Management disclosed that it has lowered its stake in Commvault, stating that Elliott, Elliott International and EICA collectively have beneficial ownership of 1,847,678 shares of common stock constituting approximately 4.0% of the shares of common stock outstanding and combined economic exposure equivalent to 2,503,063 shares of common stock constituting approximately 5.5% of the shares of common stock outstanding.
We had around 32 percent of our loan book in the real estate sector." But the bank has reduced its exposure to the real estate sector since then and has more than doubled its economic exposure. Now, the bank is trying to strike a balance between the two sectors, he added.
However, we continue to view Just Group's economic exposure to no-negative-equity guarantees on its ERM business as limited, as a result of strict controls on the maximum loan-to-value ratios offered on the policies.
"Without an iota of doubt, GCC will certainly be hit hard as it has a lot of global economic exposure. A highly globalised economy helps us to leverage on global economic growth in good times while in bad times like the 'Great Recession 'that occurred in 2008-09, it can throw us out of our balance.
Besides, given the limited size of European economic exposure to Iran, which is less than that vis-a-vis Kazakhstan, Europe is unlikely to provide the assurances and guarantees that Iran's supreme leader, Ayatollah Ali Khamenei, has sought.
Besides, given the limited size of European economic exposure to Iran, which is less than that vis-vis Kazakhstan, Europe is unlikely to provide the assurances and guarantees that Iran's supreme leader, Ayatollah Ali Khamenei, has sought.
Apart from free trade benefits to the host country at both a local and national level, there may also be economic exposure to criminal activities as a result of insufficient regulation.
McInerney said Genworth has no net economic exposure or liability related to the LTCI business reinsured by GE's Union Fidelity Life Insurance Company business.
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