Define operating exposure and economic exposure

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Reference no: EM132023676

1. Define operating exposure, economic exposure, and competitive exposure. Can you provide any insights into what may be behind the use of the different terms?

2. Why do unexpected exchange rate changes contribute to operating exposure, but expected exchange rate changes do not?

3. The key to managing operating exposure at the strategic level is for management to recognize a disequilibrium in parity conditions when it occurs and to be pre-positioned to react most appropriately. How can this task best be accomplished?

Reference no: EM132023676

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