ECONOMIC EXPOSURE Definition

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ECONOMIC EXPOSURE, in foreign exchange, is the extent to which the value of the firm, as measured by the present value of all expected future cash flows, will change when exchange rates change.

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NET CHANGE IN CASH is calculated by adding cash from operating, investing, and financing activities and foreign exchange effects from the Statement of Cash Flows.

OPERATING EFFECTIVENESS is how an internal control was applied, the consistency with which it was applied, and by whom.

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