商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT international economychap.13 foreign exchange risk.pptVIP

Foreign Exchange Risk Foreign exchange exposure is usually categorized according to whether it falls into one or more of the following categories. transaction exposure translation exposure -accounting exposure economic exposure Foreign Exchange Risk Transaction exposure arises because a payable or receivable is denominated in a foreign currency . Translation exposure arises on the consolidation of foreign currency denominated assets and liabilities in the process of preparing consolidated accounts . Foreign Exchange Risk Economic exposure arises because the present value of a stream of expected future operating cash flows denominated in the home currency or in a foreign currency may vary due to changed exchange rates. Transaction is a comparatively straight, but translation economic are more complex. * *