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 ?
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.
Bitcoin is listed by the symbol XBT and allows an investor to obtain economic exposure to Bitcoin without a digital wallet.
Due to agreements being in place, Bayer will retain the economic exposure to the price of these shares until at least the same date.
railroad companies listed on foreign exchanges in London, Amsterdam, and Paris, effectively decoupling the country of listing and the country's economic exposure.
A study of female partners of oil spill cleanup workers revealed a higher prevalence of depression among those who had more physical contact with the oil and an increase in the number of domestic partner fights among those with both greater physical contact and economic exposure to the DHOS (Rung et al.
All of the positions entered by the Wrights offset each other in various ways, and the Wrights effectively had very little economic exposure through these option holdings.
Moody's pointed out that India's economic exposure to annual fluctuations in rainfall constrains the ability of its monetary policymakers to respond to ongoing macro-economic developments.
The insurance that protects directors and officers from certain economic exposure for their roles is generally described as director and officer liability insurance (D&O insurance), though often the same policy provides coverage for the company as well.
Inga Beale, CEO of Lloyd's said, "Lloyd's City Risk Index highlights the economic exposure of 301 major cities across the world.
The failures of the NEP in small and medium-scale enterprises are brought out by Gomez's own chapter, where he argues that affirmative action in business and an over-concentration on 'race' rather than 'merit' has contributed to Malaysia's economic exposure to the vicissitudes of the global economy and has suppressed genuine entrepreneurship.
Overall, America has surprisingly little economic exposure to the world's troubles.
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