In an economy that is neither perfectly open nor completely closed, (a) Consider a company that produces and sells in this economy. Apart from contractual exposure effects, its value in terms of its...

In an economy that is neither perfectly open nor completely closed,

(a) Consider a company that produces and sells in this economy. Apart from contractual exposure effects, its value in terms of its own (local) currency is positively exposed to the value of other currencies.

(b) The value of an importing firm located in this economy could either go up or go down when the local currency devalues: the effect depends on such factors as the elasticity of local demand and foreign supply.

(c) Consider a company that produces and sells in this economy. Apart from contractual exposure effects, its value in terms of a foreign currency is positively exposed to the value of its currency expressed in terms of other currencies.