economic exposure

Definition

The risks faced by a company that does business or holds investments abroad. Economic exposure can include changes in foreign exchange rates or the chance of foreign countries defaulting on their debt. Companies often hedge against this type of risk through the foreign exchange market.

Use economic exposure in a sentence

You should always do everything you can to limit any and all economic exposure that you may have on you.

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After Thailand's government forcibly devalued their currency, my boss ordered our consultants to prepare a report on our economic exposure to southeast Asia.

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With the upheaval in the European market and the stability of the Euro in question I fear our economic exposure will be a risky asset for the immediate future.

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