Difference between translation and transaction exposure
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Translation exposure is the risk that a company's equities, assets, liabilities or income will change in value as a result of exchange rate changes.
Transaction exposure is the level of risk companies involved in international trade face, specifically, the risk that currency exchange rates will change after a company has already entered into financial obligations.
here is your answer
Translation exposure is the risk that a company's equities, assets, liabilities or income will change in value as a result of exchange rate changes.
Transaction exposure is the level of risk companies involved in international trade face, specifically, the risk that currency exchange rates will change after a company has already entered into financial obligations.
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