What concept is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs?
A) translation exposure
B) economic exposure
C) transaction exposure
D) risk exposure

Question

What concept is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs? 
A) translation exposure
B) economic exposure
C) transaction exposure
D) risk exposure

Quizplus · Accepted Answer

Economic exposure is the extent to which a firm's future international earning power is affected by changes in exchange rates. Economic exposure is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs.

What Concept Is Concerned with the Long-Run Effect of Changes