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Short-Run Exposure
Refers to the degree to which a company's financial performance is affected by fluctuations in foreign exchange rates over a short period.
Home Currency Approach
A method of currency risk management that converts all foreign currencies and related activity into the domestic currency of the company for analysis and reporting.
Foreign Currency Approach
A strategy or method for managing the risks and effects of foreign exchange rate fluctuations on investments or business transactions.
Capital Budgeting
The process a business undertakes to evaluate potential major projects or investments, such as new machinery, expansion of production or new facilities.
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