Economic exposure, also known as operating exposure, encompasses the potential impact of changes in macroeconomic variables and exchange rates on the value of a business engaged in international trade.
Understanding and Managing Risks Associated with Uncertain Exchange Rates.
Netting is the process of offsetting matching sales and purchases against each other, particularly in the context of futures, options, and forward foreign exchange. It helps firms manage risks such as exchange-rate exposure and is often facilitated by a clearing house.
