TRANSLATION EXPOSURE
10-4A
DETERMINANTS OF TRANSLATION EXPOSURE
10-4B
EXPOSURE OF AN MNC’S STOCK PRICE TO TRANSLATION EFFECTS
What is translation
exposure ?
Translation exposure is
the risk that a
company's equities,
assets, liabilities or
income will change in
value as a result
of exchange
rate changes
The extent of an MNC translation
exposure depends mainly on three
factors: