A Translation Exposure Occurs When the Dollar Value of a Receivable

question 70

True/False

A translation exposure occurs when the dollar value of a receivable or payable from exports or imports changes as the exchange-rate changes.

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving the deployment of resources in a competitive context.

Structure

The arrangement or organization of interrelated elements in a material object or system, or the organization of parts as dominated by the general character of the whole.

Bureaucratic

Relating to a system of government or organization that is managed by departments staffed with non-elected officials, often criticized for excessive procedural complexity.

Adapting

The process of making adjustments or changes in behavior, strategy, or operations in response to external conditions or challenges.