An Unexpected Change in Exchange Rates Impacts a Firm's Expected

Essay

An unexpected change in exchange rates impacts a firm's expected cash flows at four levels; a) the short run, b) medium run: equilibrium, c) medium run: disequilibrium, and d) the long run. Describe the impact on cash flows over each of these categories identifying the time frame for each as well as the price changes, volume changes, and structural changes associated with each stage.