Download or read book Export Production Under Exchange Rate Uncertainty written by Udo Broll and published by . This book was released on 2008 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Export Production Under Exchange Rate Uncertainty written by Udo Broll and published by . This book was released on 2009 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given that a multinational enterprise can react flexibly upon exchange rate movements, international trade flows may be interpreted as an option. An enterprise will opt to export if the profits obtained from exporting under given exchange rate developments are greater than if foreign subsidiary sales were opted. Naturally, given negative exchange rate scenario situations, an enterprise will choose not to export. By virtue of a favorable exchange rate situation it may be more advantageous to implement the flexibility given by the inherent option exercise privilege. Interestingly, even taking account of entrepreneurial risk aversion aspects of enterprises, it is demonstrated that situations characterized by enhanced exchange rate volatility may still lead to greater export trade volumes.
Download or read book The Effect Of Exchange Rate Volatility On Exports written by Emmanuel Erem and published by GRIN Verlag. This book was released on 2019-03-20 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2018 in the subject Economics - International Economic Relations, grade: A, National University of Ireland, Maynooth (Department of Economics, Finance and Accounting), course: MSc Economic and Financial Risk Analysis, language: English, abstract: The purpose of this thesis is to examine the effect of real exchange rate volatility between the Canadian and US dollars on real exports from Canada to US. The study uses quarterly data from 1960-2017. The GARCH (1, 1) is used to model exchange rate volatility. After finding the variables are non-stationary with no co-integration, a VAR (Vector Auto regression) model is used to investigate the short-run relationship in the variables using Granger causality, impulse response functions and variance decomposition estimates. The results reveal that the effect of exchange rate volatility is of mixed signs with coefficients that are not statistically significant. The thesis is divided into 7 chapters; chapter 2 gives an overview of important literature and contributions by researchers over the years specifically covering the relationship between exchange rate volatility and trade, exchange rate regimes, exchange rate target zones and inflation targeting. Chapter 3 presents the model and data used, definitions of the variables and the predictions of the model. Chapter 4 gives a theoretical and econometric overview of the unit root and co-integration tests. Chapter 5 gives the data output of the empirical results and discussions of test results. This output is presented using graphs and tables. Chapter 6 is a presentation of the limitations of the model and possible areas of improvement. Lastly, chapter 7 concludes and gives policy recommendations moving forward. Exchange rates are a key player in any economy that is engaging in international trade. A stable monetary policy system and financial sector play a key role in ensuring the exchange rate stability of the currency of a country. Firms and traders rely on prevailing exchange rates to forecast amounts to produce, import and export; thus are very much affected by the exchange rate volatility. In addition to this, there is a currency conversion cost in international trade. Traders use a number of products in financial markets to hedge against currency fluctuations; these include among others forwards contracts. This is especially true for short-term hedging than long-term hedging.
Download or read book IMF Staff papers written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 1988-01-01 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: A central proposition regarding effects of different mechanisms of fi-nancing public expenditures is that, under specific circumstances, it makes no difference to the level of aggregate demand if the government finances its outlays by debt or taxation. This so-called Ricardian equivalence states that, for a given expenditure path, substitution of debt for taxes does not affect private sector wealth and consumption. This paper provides a model illustrating the implications of Ricardian equivalence, surveys the litera-ture, considers effects of relaxing the basic assumptions, provides a frame-work to study implications of various extensions, and critically reviews recent empirical work on Ricardian equivalence.
Download or read book Exchange Rate Volatility and Trade Flows Some New Evidence written by International Monetary Fund and published by International Monetary Fund. This book was released on 2004-05-19 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: NULL
Download or read book The Impact of Price Uncertainty written by Don Coes and published by Taylor & Francis. This book was released on 2017-04-21 with total page 285 pages. Available in PDF, EPUB and Kindle. Book excerpt: Originally published in 1979. This book addresses three questions regarding uncertainty in economic life: how do we define uncertainty and use the concept meaningfully to provide conclusions; how can the level of uncertainty associated with a particular variable of economic interest be measured; and does experience provide any support for the view that uncertainty really matters. It develops a theory of the effect of price uncertainty on production and trade, takes a graphical approach to look at effects of a mean preserving spread to create rules for ordering distributions, and finishes with an econometric analysis of the effects of Brazil’s adoption of a crawling peg in reducing real exchange rate uncertainty. This is an important early study into the significance of uncertainty.
Download or read book Commodity Prices and Markets written by Takatoshi Ito and published by University of Chicago Press. This book was released on 2011-03 with total page 346 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fluctuations of commodity prices, most notably of oil, capture considerable attention and have been tied to important economic effects. This book advances our understanding of the consequences of these fluctuations, providing both general analysis and a particular focus on the countries of the Pacific Rim.
Download or read book Exchange Rate Volatility and International Agricultural Trade written by Suchada Vichitakul Langley and published by Captus Press. This book was released on 2002 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effects of Real Exchange Rate Volatility on Sectoral Investment written by Bahar Erdal and published by Routledge. This book was released on 2017-05-18 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: Originally published in 1997. This study investigates what the effects of real exchange rate volatility are on sectorial investment in the fixed and flexible exchange rate systems. It lays out the results of research into the effects of the levels and volatility of real exchange rates on investment in the manufacturing sectors of the countries in the European Monetary System as well as of the countries in the flexible exchange rate system, with data from between 1973 and 1993. Examining the differences between the two systems in the results this book also looks at exchange rate effects on interest rates at the time.
Download or read book The Impact of Exchange Rate Uncertainty on Output written by Alice Asadurian and published by . This book was released on 2003 with total page 874 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Fluctuations and Trade Flows Evidence from the European Union written by Giovanni Dell'Ariccia and published by International Monetary Fund. This book was released on 1998-08 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: One main argument against flexible exchange rates has been that exchange rate volatility could have negative effects on trade and investment. If exchange rate movements are not fully anticipated an increase in exchange rate volatility, which increases risk, will lead risk-averse agents to reduce their import/export activity and to reallocate production toward domestic markets. In this paper we provide some estimates of the importance of these effects in the European Union.
Download or read book Effects of Exchange Rate Volatility on Export Diversity written by Ngo Van Long and published by . This book was released on 2020 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a model of product-variety adjustment in which a firm's choice of the number of varieties exported to each market (export scope) reflects a trade-off between short-run responses to demand shocks associated with exchange rate fluctuations and the costs of making investment in the production capacity. Firms reduce their export scopes when markets suffer negative demand shocks but, in the case of positive shocks, are unable to expand them adequately, due to insufficient pre-investment in production capacity. As a result, we observe asymmetric export responses to exchange rate fluctuations, and negative effect of exchange rate volatility on exports. Data on Chinese exporters support our predictions.
Download or read book Exchange Risk in International Trade Under Alternative Exchange Systems written by Shashikant Gupta and published by . This book was released on 1980 with total page 366 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Multiple Uncertainty Forward futures Markets and International Trade written by Jean-Marie Viaene and published by . This book was released on 1995 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tiivistelmä.
Download or read book Exchange Rate Volatility Pricing to Market and Trade Smoothing written by Mr. Hamid Faruqee and published by International Monetary Fund. This book was released on 1997-10-01 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the consequences of exchange rate volatility on the variability of export prices and quantities in the presence of market segmentation and pricing to market. Firms stabilize destination prices through systematic price discrimination, limiting the degree of exchange rate pass-through. Consequently, the variability of exchange rates is not fully translated into prices and quantities at the point of destination. Empirical estimates using aggregate price data for the G-7 industrial countries show incomplete pass-through in variances, with considerable variation among these countries. U.S. industry specific data also indicate incomplete pass-through in most cases, with considerable variation across industries.
Download or read book International Finance and Trade written by Marshall Sarnat and published by . This book was released on 1979 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Export and Domestic Sales Under Price and Exchange Rate Uncertainty written by Sudhakar Satyanarayan and published by . This book was released on 1992 with total page 480 pages. Available in PDF, EPUB and Kindle. Book excerpt:
