The methodology of the survey assumes that the same 74% of respondents
who acknowledged they have exposure to trade related accounts receivable
and payable also have exposure to forecasted foreign currency revenues
and expenses. Our logic is that any company with ongoing transactions
that generate foreign currency settlements would also be affected by future
rate movements that could alter the terms of trade. In the broadest terms,
forecasted revenues or expenses denominated in a foreign currency represent
“economic” exposure to the currency markets, reflecting the potential for
revenues or expenses to be affected either positively or adversely by future,
unpredictable exchange rate movements.