economic exposure

Economic exposure

The extent to which the value of a firm will change because of an exchange rate change.

Economic Exposure

The risk of loss that a company experiences when investing or operating abroad. That is, when a company has interests in more than one country, economic exposure is the risk that a change in the economy in one of the countries will negatively impact its investments or operations. Examples of economic exposure include the possibilities that exchange rates could fluctuate or that a government could defaults on its debt, which would affect the foreign currency. See also: Foreign-exchange risk.

economic exposure

see EXCHANGE RATE EXPOSURE.