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Transaction exposure is the FX exposure that you face on your operating working capital (accounts receivable, accounts payable etc.). Operating exposure is the FX exposure
Transaction exposure is the FX exposure that you face on your operating working capital (accounts receivable, accounts payable etc.). Operating exposure is the FX exposure that you face on your long term assets. Which one of these exposures needs to be managed more actively (frequently)? Which tools can you use to manage transaction exposure? In your opinion, managing which of these two exposures is more risky? Why?
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