Question

Difference between economic and accounting exposure

Answer 1

Answer:

Translation or Accounting Exposure: equals the difference between exposed assets and liabilities. The trick is to decide what is exposed and what is not. Sometimes called balance sheet risk. Operating or Economic Exposure: Changes in the economic value of an enterprise as a result of an exchange rate change.

Answer 2

Answer:

economic exposure=>it is caused on a company flow back due to money fluctuations