Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at brianowens.tv and Kapitall Wire and holds a MA in Economics from The New School for Social Research and Doctor of Philosophy in English literature from NYU.” data-inline-tooltip=”true”>Will Kenton
You are watching: What is meant by translation exposure?
Example of translation risk using McDonald's Corporation quarterly results. brianowens.tv
Although a 1% impact on net income from currency translation doesn't appear to be material, it boosted net income by approximately $11 million for the quarter. McDonald's has various types of hedges in place to help mitigate the risk of exchange rate losses and translation risk.
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