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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Can you please be more specific what is your question so I can try to help.
They got to Oklahoma by land on their horses and wagons.
The correct answer is "raise" your prices.
You need cotton to produce clothing and if it becomes more expensive then your manufacturing becomes more expensive and you need to increase your prices so as not to lose money when making.
A Trade barrier are laws that limits free trades between countries or nations, An Embargo are type of laws that specifically cuts off trades, it may be import or export into specific countries. Either of these answers fit your question.
