Foreign Exchange Exposure Transaction exposure and operating exposure exist because of unexpected changes in future cash flows The difference between the two is that transaction exposure is concerned with future cash flows already contracted for,while operating exposure focuses on expected (not yet contracted for)future cash flows that might change because a change in exchange rates has altered international competitiveness.Foreign Exchange Exposure Transaction exposure and operating exposure exist because of unexpected changes in future cash flows. The difference between the two is that transaction exposure is concerned with future cash flows already contracted for, while operating exposure focuses on expected (not yet contracted for) future cash flows that might change because a change in exchange rates has altered international competitiveness