Economic exposure

The extent to which the value of the firm will change because of an exchange rate change. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Economic Exposure — An exposure to fluctuating exchange rates, which affects a company s earnings, cash flow and foreign investments. The extent to which a company is affected by economic exposure depends on the specific characteristics of the company and its… …   Investment dictionary

  • Economic Exposure — ⇡ Exposure …   Lexikon der Economics

  • economic exposure — 1) The possible impact on the value of a business of macroeconomic variables. 2) The exposure of a business selling goods abroad or buying goods from abroad to the risks resulting from changes in exchange rates. See: exchange rate exposure …   Accounting dictionary

  • economic exposure — The extent to which the value of a firm will change because of an exchange rate change. Bloomberg Financial Dictionary …   Financial and business terms

  • exposure — The vulnerability that is attached with an investment. There are different types of exposures that an investment may have, such as, currency exposure or economic exposure. For example, currency exposure is the proportion of your share portfolio… …   Financial and business terms

  • economic value of equity — ( EVE) One measure of exposure to interest rate risk. The difference between the sum of the present values of all cash flows from assets and the sum of the present values of all cash flows from liabilities. This difference is a proxy or estimate… …   Financial and business terms

  • Exposure at default (EAD) — is a parameter used in the calculation of economic capital or regulatory capital under Basel II for a banking institution. This is an attribute of any exposure on bank s client.DefinitionIn general EAD can be seen as an estimation of the extent… …   Wikipedia

  • economic — economic, economical 1. These are both adjectives answering to the word economy: economic in the meanings ‘relating to economics’ and ‘frugal, characterized by good economy’, and economical in the meaning ‘sparing in the use of resources’. An… …   Modern English usage

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Economic crisis of 2008 — In 2008, the possibility of an economic crisis was suggested by several important indicators of economic downturn worldwide. These included high oil prices, which led to both high food prices (due to a dependence of food production on petroleum,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.