Operating exposure arises from unexpected changes in the future value of operations and financing cash flows, as a result of unexpected changes in the exchange rate. Discuss(with examples) the two types of cash flows and how managers can effectively manage the associated operating.

Answer rating: 100% (QA)

Operating exposure refers to the potential impact of unexpected changes in exchange rates on a companys future cash flows from its operating activities It arises due to the exposure of a companys reve... View the full answer