Forex center
 
Forex center
History
Overview
Forex for Beginners
Dollar-Euro
Famous People
Forex Books
Glossary
Currency Converter
Fx Software
Fundamental Analysis
Technical Analysis
Economic Calendar
Bank Researches
Forex Courses
Psychology
Forex Brokers

Customer Service:
clients@forexcenter.com

Advertisments:


Easy Forex
Foreign Exchange Exposure
Transaction Exposure Transaction exposure results from transacting business in a currency that is different from the currency of the company’s home base, such as when companies import or export goods and services denominated in foreign currencies, or when they borrow or invest in foreign currencies. This mainly impacts a company’s profit and loss and cash flow, and the negative aspects of such exposure can be mitigated through the use of foreign exchange products, such as forward contracts, which lock in a specific exchange rate for settlement at the time the payment is due.

Translation Exposure Translation exposure occurs when the financial statements of a foreign subsidiary are combined into the parent company’s statements and translated into the parent company’s reporting base currency. The translation of foreign assets and liabilities into the parent company’s home currency for accounting purposes principally impacts a company’s balance sheet and can be mitigated through the use of foreign exchange products such as a forward contract or a currency option.

Economic Exposure Economic exposure relates to a company’s exposure to foreign markets and suppliers. It is also referred to as competitive, strategic or operational exposure and is more difficult to identify than translation or transaction exposure. The classification of economic exposure involves in-depth prognostication to determine how sensitive a company’s business is to changes in exchange rates, as the value of a company is affected by the changes in the exchange rates on both its existing and potential products and markets. Available products in the foreign exchange market such spot transactions, forward contracts, foreign exchange swaps, currency swaps, currency options, and foreign exchange futures contracts can address any problems that might arise with economic exposure.
08, October 2006
The New Oil Boom
Searching for an investment opportunity that involves oil alternatives is a logical move, but recent studies have shown there are other oil opportunities that could prove to be highly profitable.
24, September 2006
US Congress Approves Oman Trade Pact
In a 63 to 31 vote, the United States Senate put its seal of approval on a free trade agreement with the Arabian Gulf state of Oman.
Easy Forex
Symbol Rate
GBP:CHF 2.007608
GBP:JPY 182.222212
GBP:USD 1.757198
NZD:USD 0.658397
EUR:CAD 1.503413
EUR:CHF 1.557680
EUR:GBP 0.775889
EUR:JPY 141.384148
EUR:USD 1.363390
AUD:JPY 80.415028
AUD:USD 0.775455
USD:CAD 1.102702
USD:CHF 1.142505
USD:JPY 103.700427
USD:SEK 7.185028

Disclimer: This website is for informational purposes only and is not intended to provide
specific commercial, financial, investment, accounting, tax, or legal advice.

© ForexCenter.com, 2005, All Rights Reserved