The risks faced by a company that does business or holds investments abroad. Economic exposure can include changes in foreign exchange rates or the chance of foreign countries defaulting on their debt. Companies often hedge against this type of risk through the foreign exchange market.
Related information about economic exposure:
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An exposure to fluctuating exchange rates, which affects a company's earnings, cash flow and foreign investments. The extent to which a company is affected by ...
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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 ...
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A firm is subject to `economic exposure' if changes in exchange rates affect the firm's value, as measured by the present value of its future cash flows. This paper ...
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