(Answered) Managing exposureit is generally not possible to completely

Finance

Managing Exposure

It is generally not possible to completely eliminate both translation exposure and transaction exposure. In some cases, the elimination of one exposure will also eliminate the other. But in other cases, the elimination of one exposure actually creates the other.

Discuss which exposure might be viewed as the most important to manage.

What are the advantages and disadvantages of the common methods for controlling translation exposure?

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