An lllustration of Operating Exposure o note that the exposure for the retailers has two components The Competitive effect Difficulties and increased costs of shipping The Conversion effect Lower dollar prices of imports due to foreign currency exchange rate depreciation McGraw-Hilylrwoin 12-9 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rightsMcGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 12-9 An Illustration of Operating Exposure ⚫ Note that the exposure for the retailers has two components: ◼The Competitive Effect ◆Difficulties and increased costs of shipping. ◼The Conversion Effect ◆Lower dollar prices of imports due to foreign currency exchange rate depreciation