国际财务管理PT.pptVIP

McGraw-Hill/IrwinCopyright ? 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 14-* Translation Exposure versus Transaction Exposure Translation Exposure The effect that unanticipated changes in exchange rates has on the firm’s consolidated financial statements. An accounting issue. Transaction Exposure The effect that unanticipated changes in exchange rates has on the firm’s cash flows. A finance issue and the subject of Chapter 13. It is generally not possible to eliminate both translation exposure and transaction exposure. McGraw-Hill/IrwinCopyright ? 2001 by The McGraw-Hill