a Why do unexpected exchange rate changes contribute to operating exposure, but expected exchange rate changes do not b Explain the time horizons used to analyze unexpected changes in exchange rates ...

a Expected changes in foreign exchange rates should be incorporated in all financial plans of an MNE ...

a. Why do unexpected exchange rate changes contribute to operating exposure, but expected exchange rate changes do

Question:

a. Why do unexpected changes contribute to operating exposure, but expected changes do not?
b. Explain the time horizons used to analyze unexpected changes in exchange rates.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...