Question

What is the difference between transactions and economic exposure? Which can be hedged more easily? Why?

   What is the difference between transactions and economic exposure? Which can be hedged more easily? Why?
Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
Stephen A. Ross;… 11th Edition
Chapter 23, Problem 11 ↓

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It primarily affects the cash flows of a specific transaction, such as the purchase or sale of goods or services denominated in a foreign currency. For example, if a company in the United States imports goods from a supplier in Europe and the exchange rate between  Show more…

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What is the difference between transactions and economic exposure? Which can be hedged more easily? Why?
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