Usually the firms that show significant exchange rate exposure are:
1. Multinationals – firms having their operations in more than one country. Since these firms sell products or services in countries other than their origin as well, their profit line is impacted by exchange rate.
2. Firms dependent on exports – these firms manufacture products in their country of origin and export these products to other countries and hence, are impacted by changes in exchange rate.
3. Firms dependent on imports of raw materials – similar to firms dependent on exports, these firms import their raw materials from other countries and then manufacture product. Therefore, their cost of goods sold depends on exchange rate.