How to measure Economic exposure o Economic exposure is the sensitivity of the future home currency value of the firms assets and liabilities and the firm's operating cash flow to random changes in exchange rates o There exist statistical measurements of sensitivity McGraw-Hilylrwoin 12-3 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rightsMcGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 12-3 How to Measure Economic Exposure ⚫ Economic exposure is the sensitivity of the future home currency value of the firm’s assets and liabilities and the firm’s operating cash flow to random changes in exchange rates. ⚫ There exist statistical measurements of sensitivity