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

References in periodicals archive ?
Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities.
This product has the same economic exposure as a Market Agreed Coupon (MAC) interest rate swap; the benefits of a futures contract; and at expiration, all open positions deliver into a CME Cleared Interest Rate Swap.
Inga Beale, CEO of Lloyd's said, "Lloyd's City Risk Index highlights the economic exposure of 301 major cities across the world.
10 given its current account deficit (seven per cent GDP), overleveraged banking system, $250 billion consumer loan time bomb, economic exposure to Iraqi Kurdistan and Syria, dependence on offshore hot money inflows to finance government debt, political tensions between the AKP ruling elite and the military high command in Ankara.
Overall, America has surprisingly little economic exposure to the world's troubles.
Air New Zealand, Singapore Airlines and Etihad Airways will also sub-underwrite the Entitlement Offer or commit to increase their economic exposure via cash settled derivatives.
More than 12 million Indonesians live and work in earthquake-prone zones, with economic exposure reaching an estimated $79 billion.
Economic exposure is the sensitivity of company value to exchange rate movements.
Economic exposure arises if the value of the company's cash flow is affected by exchange rate moves.
Economic exposure to floods is increasing faster than per capita GDP in all regions.
a[bar] increasing its economic exposure but not voting rights.
Noyer said the exposure was a 'normal economic exposure.
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