Exchange rate risk and international trade: The role of third country effect

2018 ◽  
Vol 167 ◽  
pp. 152-155 ◽  
Author(s):  
Cengiz Tunc ◽  
M. Nihat Solakoglu ◽  
Senol Babuscu ◽  
Adalet Hazar
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Exchange Rate Risk ◽  
Rate Risk ◽  
Country Effect

scholarly journals Unanticipated Exchange Rate Risk And U.S. Imports

2011 ◽  
Vol 10 (4) ◽  
pp. 19
Author(s):  
Abdul H. Sukar
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Error Correction ◽  
Negative Impact ◽  
Exchange Rate Risk ◽  
Controversial Issues ◽  
Rate Risk ◽  
Significant Negative Impact ◽  
The Exchange Rate ◽  
The Relationship

<span>The effect of exchange rate risk on trade is one of the more controversial issues in international trade. This paper uses cointegration and error-correction approach to investigate the relationship between unanticipated exchange rate risk and U.S. imports over the period 1974:1-1992:4. The major finding of this study is that the exchange rate risk has a significant negative impact on U.S. imports.</span>

Export, Exchange Rate Risk and Hedging: The Duopoly Case

2011 ◽  
Vol 12 (4) ◽  
pp. 490-502 ◽  
Author(s):  
Udo Broll ◽  
Jack E. Wahl ◽  
Christoph Wessel
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Risk Exposure ◽  
Exchange Rate Risk ◽  
Cournot Duopoly ◽  
Forward Market ◽  
Rate Risk

Abstract This paper studies a Cournot duopoly in international trade with firms exposed to exchange rate risk. A hedging opportunity is introduced by a forward market on which one firm can trade the foreign currency.We investigate two settings: First, we assume that hedging and output decisions are taken simultaneously. It is shown that hedging is exclusively done for risk-managing reasons as it is not possible to use hedging strategically. Second, the hedging decision is made before the output decisions. We show that hedging is not only used to manage the risk exposure but also as a strategic device.

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