Retrieving "Sales Volume" from the archives
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Currency Risk
Linked via "sales volume"
Economic exposure, or operating exposure, is the most pervasive and long-term form of currency risk. It reflects the potential impact of exchange rate movements on a firm's future competitive position and the present value of its expected future cash flows. This exposure stems from the effects of exchange rates on input costs, pricing strategies, and overall market demand in different regions.
For instance, if the US Dollar strengthens substantially, [U…