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Economic Conditions
The state of the economy at a given time, influenced by factors such as GDP growth rates, unemployment levels, and inflation rates.
Short-Run Exposure
The risk faced by companies due to fluctuations in exchange rates that can affect their transactions and finances in the near term.
Translation Exposure
The risk that a company's financial statements can be affected by changes in exchange rates when they have operations in foreign currencies.
Depreciation
The accounting method of allocating the cost of a tangible or physical asset over its useful life.
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