International Market – Lucrative But Challenging As Well
Markets are categorized in several ways, such as industry, consumer, product, geography, etc. Based on geography, a market is categorized as either a national… Read Article
Foreign Exchange
Types of Exchange Rates
What are Exchange Rates?“Exchange rates is an amount of the domestic currency you will have to pay to obtain a unit of a foreign… Read Article
Transaction vs Economic Exposure
‘Transaction vs Economic Exposure’ is equivalent to comparing short-term vs. long-term impact on cash flow changes due to forex fluctuations in the market. Transaction… Read Article
Transaction vs Translation Exposure
Transaction exposure impacts a forex transaction’s cash flow, whereas translation exposure impacts the valuation of assets, liabilities, etc., shown in the balance sheet.
Multi-national… Read Article
Economic Exposure
Meaning of Economic ExposureEconomic exposure, also known as operating exposure (a type of foreign exchange exposure), refers to an effect caused on a company’s… Read Article
Transaction Exposure
Meaning Of Transaction ExposureTransaction exposure is a type of foreign exchange (currency) exposure incurred due to the fluctuations in exchange rates before the contract… Read Article
Translation Exposure
Meaning of Translation ExposureTranslation exposure is a type of foreign exchange (currency) risk of change in the value of a company’s assets, equities, income,… Read Article
Foreign Exchange
Meaning of Foreign ExchangeForeign exchange, also termed Forex, refers to converting one country’s currency into another country’s currency. A single country’s currency is valued… Read Article
Purchasing Power Parity
Definition of Purchasing Power ParityPurchasing Power Parity (PPP) states that the currency of two countries is in equilibrium when the purchasing power in both… Read Article
Types of Foreign Exchange (Currency) Exposure
Foreign exchange exposure is classified into three types, viz. translation, transaction, and economic exposure. Transaction exposure deals with actual foreign currency transactions. Translation exposure… Read Article
International vs. Domestic Finance
In international vs domestic finance, the term international finance is different from domestic finance in many aspects. And the first and the most significant… Read Article