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Differentiate between the terms Transaction Exposure, Economic Exposure, and Translation Exposure. Your answer should describe what each one is, what the potential impact is on
Differentiate between the terms Transaction Exposure, Economic Exposure, and Translation Exposure. Your answer should describe what each one is, what the potential impact is on the finances of a global firm, what tools are available to manage the exposure, and how important it is to actively manage the exposure. For the third type, you may assume the subsidiaries are all operating in countries with stable currencies and that those currencies are the functional currency of each subsidiary.
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