Transaction exposure deals with cash flows that result from existing contractual obligations.
The degree of uncertainty that businesses engaged in international trade must deal with is known as transaction exposure. It is also known as translation exposure or translation risk .
It is specifically the risk that exchange rates will change after a company has already committed to a financial obligation. These foreign enterprises are extremely vulnerable to changing exchange rates, which can result in significant capital losses.
Transaction exposure often carries only one side of the risk. The only company that might experience this vulnerability is one that completes a transaction in a foreign currency.
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Macroeconomics deals with the economy as a whole and so deals with how variables such as government spending and interest rates will affect the entire economy not just single entities.
Microeconomics on the other hand, deals with individual entities in the economy and how various variables and decision making will affect them.
A nation prints more money, causing inflation. MACROECONOMICS.
This affects the entire nation not just single entities so it is macroeconomics.
A local store has a buy one, get one free sale. MICROECONOMICS.
This relates to the actions of a single entity in the economy so falls under microeconomics.
Oil production decreases, and gas prices rise nationwide. MACROECONOMICS.
As this concerns the entire nation, it is therefore under the realm of Macroeconomics.
A primary source is told or written down by a person that experienced or saw the event. While, a secondary source is told or written by someone else
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<span>Parents who discuss and negotiate family rules are especially likely to raise children who are self-reliant, as those discussions and negotiations encourage the children to rely on their own resources and abilities rather than the resources and abilities of others.</span>
