Economic exposure is the risk that companies face if they deal with business abroad or hold investments there.  It is the exposure to fluctuating exchange rates, which affects a company’s earnings, cash flow, and foreign investments, and to the chance of foreign countries failure to pay their debt. The degree to how a company is affected by economic exposure depends on the nature and business of the company.  However, many companies often hedge against this kind of risk through the foreign exchange market.   Economic exposure: http://www.investopedia.com/terms/e/economicexposure.asp.  Definition of Economic Exposure