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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Kwanzaa is a weeklong celebration held in the United States that honors African heritage in African-American culture. Kwanzaa is that time when we reflect on our use of the basic principles, share and enjoy the fruits of our labor, and recommit ourselves to the collective achievement of a better life for our family, our community, and our people. There are symbols which have a special meaning to the celebration of Kwanzaa.
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