What is the concept that 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

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 Is the Concept That Is Concerned with the Long-Run