BUS450 Week 3 dq 2 Managing Exposure
1 st Posting Due by Day 3. Managing Exposure. It is generally not possible to completely eliminate both translation exposure and transaction exposure. In some cases, the elimination of one exposure will also eliminate the other. But in other cases, the elimination of one exposure actually creates the other. Discuss which exposure might be viewed as the most important to manage. What are the advantages and disadvantages of the common methods for controlling translation exposure? Respond to at least two of your classmates’ postings.
It is not always both possible to completely eliminate both the transactional and translation exposure. However, transaction exposure is one that cannot be completed eliminated since it deals with money; direct cash flow. Translation exposure can be done away with without necessarily affecting transaction exposure. However, when you do away with transaction exposure then you have completely affected the entire system…