Question: 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

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.

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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 full answer

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