国际金融（原书第12版）教学课件作者大卫.艾特曼（DavidEiteman）阿瑟.斯通西M11_EITE1342_12E_IM_C11课件.pdfVIP

Chapter 11 Transaction Exposure ? Questions 11-1. Foreign Exchange Exposure. Give a general definition of “foreign exchange exposure” as it relates to the operations of a multinational enterprise. In its most general sense, foreign exchange exposure is the possibility of either beneficial or harmful effects on a company caused by a change in foreign exchange rates. The effect on the company may be on its profits, its cash flows, or its market value. 11-2. Exposure Types. Explain the differences among transaction, operating, and translation exposure. a. Transaction exposure is the potential for a gain or loss in contracted-for, near-term cash flows caused by a foreign-exchange-rate-induced change in the value of amounts due to the MNE or amounts that the MNE owes to other parties. As such, it is a change in the home currency value of cash flows that are already contracted for. b. Operating exposure is the potential for a change in the value of an MNE, usually viewed as the present value of all future cash inflows, caused by unexpected exchange rate changes. As such, it is a change in expected long-term cash flows; i.e., future cash flows expected in the course of normal business but not yet contracted for. c. Translation exposure is the possibility of a change in the equity section (common stock, retained earnings, and equity reserves) of an MNE’s consolidated balance sheet, caused by a change (expected or not expected) in foreign exchange rates. As such it is not a cash flow change, but is rather the result of consolidating into one parent company’s financial statement the individual financial statements of related subsidiaries and affiliates. 11-3. Translation versus Transaction Exposure. How do translation exposures and a transaction exposures alter corporate cash flow? Translation exposure measures accounting (book) gains and losses from a change in exchange rates, and therefore does not alter corporate cash flows. Transaction exposure measures cash (realized) ga