Measuring economic exposure of multinational firm

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Reference no: EM132002150

Measuring economic exposure of a multinational firm can be done by using either of the following two methods:

a) measuring the mean or measuring the median of the firm’s cash flows

b) measuring the sensitivity of the firm’s cash flows to exchange rate changes or regressing firm’s cash flows on the exchange rates to estimate economic exposure

c) measuring the accounting exposure or measuring translation exposure of the firm.

Reference no: EM132002150

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