Exchange rate volatility and international trade: The option approach

Research, Preprint OPEN
Franke, Günter;
  • Publisher: Konstanz: Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
  • Subject: Wechselkurs | Währungsmanagement | Internationale Betriebswirtschaftslehre
    • ddc: ddc:330
    mesheuropmc: education

Usually it is argued that an increase in exchange rate volatility reduces the volume of international trade since trading firms are risk averse. This paper shows for risk neutral firms that the expected international trade volume in standardized commodities grows with e... View more
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