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Pricing of Exports and Exchange Rate Uncertainty
Oleh:
Donnenfeld, Shabtai
;
Zilcha, Itzhak
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
INTERNATIONAL ECONOMIC REVIEW vol. 32 no. 4 (1991)
,
page 1009-1022.
Topik:
exchange rate
;
pricing of exports
;
exchange rate
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
II49.1
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
This paper examines the implications of different pricing - cum - invoicing strategies available to an exporting firm which sells its product in domestic and foreign markets when the exchange rate is uncertain. The firms' decisions are made sequentially. Throughout the decision making process the firm receives new information about the distribution of the random exchange rate. The information arrives after output decisions have been made but before setting prices and allocating sales. We state conditions which lead to the dominance of invoicing exports in the importers currency over the alternative invoicing strategies.
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