scholarly journals Profit bridges that disambiguate impacts of currency fluctuations from other marketing variables

2021 ◽  
Author(s):  
Tim J. Smith ◽  
Kyle T. Westra ◽  
Nathan L. Phipps
Keyword(s):  
Exchange Rate ◽  
Multinational Corporation ◽  
Variable Cost ◽  
Currency Exchange ◽  
Business Units ◽  
Exchange Rate Fluctuations ◽  
Currency Exchange Rate ◽  
Marketing Variables ◽  
Exchange Rate Changes ◽  
The Impact

AbstractWe extend the normalized approach to constructing profit bridges proffered in a recent paper to examine the impact of currency exchange rate fluctuations within a multinational corporation. In doing so, we describe a profit bridge that would measure corporate performance distinct from that which would measure the performance of business units, including metrics for the impact of volume, price, variable cost, offering mix, and exchange rate changes.

scholarly journals Exports, Exchange Rates and Productivity: An Analysis of the Japanese Manufacturing Sectors

2016 ◽  
Vol 6 (1) ◽  
pp. 7
Author(s):  
Atsuyuki Kato
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Sample Selection ◽  
Specific Productivity ◽  
Negative Effects ◽  
Firm Level ◽  
Transportation Equipment ◽  
Exchange Rate Fluctuations ◽  
Exchange Rate Changes ◽  
The Impact

This paper examines the effects of exchange rate changes and productivity on manufacturing exports. Using the dataset of the Japanese manufacturing firms during the period, 2002 – 2012, we discuss if exchange rate fluctuations deter export activities and if productivity and markup differences affect it. For this study, we estimate both firm specific productivity and markups by the production function based approaches and incorporate them into the Heckman sample selection model. Our results show exchange rates are important factors to affect firm-level exports as a whole while temporal aggregation should be carefully considered. In addition, this study also reveals that productivity and markup give different impacts on firm-level exports across industries. In the transportation equipment industry, negative effects of appreciation on exports are partly mitigated by higher productivity. Markups are positively related to exports in the electronics industry while negative in the transportation equipment. Neither productivity nor markup absorbs the impact of exchange rate changes in the machinery industry. Those findings imply that stability of exchange rates is very important while the effective trade policy may vary across industries following their trade structure.

scholarly journals Utjecaj krize na promjene osobne potrošnje pojedinaca: sjećanje na krizu i odluke o potrošnji budućeg dohotka

2017 ◽  
Vol 7 (2) ◽  
pp. 66
Author(s):  
Marko Atelj ◽  
Ivona Mikulandra Volić ◽  
Josipa Perkov
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Binary Logistic Regression ◽  
Natural Logarithm ◽  
Exchange Rate Fluctuations ◽  
Personal Consumption ◽  
Future Income ◽  
The Republic ◽  
Exchange Rate Changes ◽  
The Impact

The impact of the crisis on the change and the characteristics of personal consumption in the Republic of Croatia is a subject of numerous studies. The emergence of the crisis is perceived as an unforeseen shock to the consumer leading to a research about the extent that this shock had on decisions related to personal consumption and spending of future incomes. The question that remains is how long does the memory of the crisis lasts and how much time after the end of the crisis or its decrease it continues to affect decisions regarding the spending of individuals. In this paper, through a survey of 521 respondents, a research was conducted investigating whether the shock caused by the Swiss franc's exchange rate fluctuations is influencing current consumption or the spending of future income through the use of loans. Are individuals expecting a re-occurrence of significant exchange rate changes and interest rates and are they making decisions on spending future income in the light of these expectations? In order to examine how the shock caused by changes in the Swiss franc exchange rate affects opinions about loans a binary logistic regression was used. The results show that the natural logarithm of chance that an individual was affected by the shock relating to his attitude towards loans was positively associated with the shock experience (p

scholarly journals GDP Development of China and USA in terms of mutual sanctions and COVID-19

2021 ◽  
Vol 92 ◽  
pp. 07061
Author(s):  
Petr Šuleř ◽  
Jaromír Vrbka
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Global Economy ◽  
Market Access ◽  
Value Added ◽  
Security Issues ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
The Usa ◽  
The Impact

Research background: China’s share in the global economy has experienced a swift growth since opening up and reforming the country’s foreign policy in 1978. USA sanction on China has so far concentrated on a heap of issues including China’s enormous exchange shortfall with the U.S., currency control, constrained market access, licensed innovation robbery and security issues identified with Huawei. Also, USA sanction on China has so far lead to a decrease in exports and outflow of FDI, reduce in the inflow trade and investment, and apparently hinders the Chinese GPD growth and diminished its currency exchange rate. Purpose of the article: The aim is to predict the future development of the GDP of the China and the USA and to estimate their further development through the prism of mutual trade sanctions and COVID-19. Methods: The data collection demonstrates the course of a time series of a daily RMB exchange rate development from the beginning of 1992 to June 2020. Furthermore, it represents the time series of a quarterly development of the Chinese GDP for the same time period. Using neural networks, a regression for different variants of the time series delay in connection with the analysis of the USA sanctions is conducted. Findings & Value added: The GDP of both countries has developed over the last two years, as if sanctions had not been imposed. However, the situation is changing with COVID-19. In this case, it is clear that the impact will be more significant. US GDP will stagnate. PRC GDP will fall.

scholarly journals Exchange Rate Transaction of International Trade Goods Based on Fuzzy Granulation and Deep Learning

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Jin Hu ◽  
Li Han
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Asset Price ◽  
Evaluation Index System ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
The Interest Rate ◽  
Rate Evaluation ◽  
The Impact ◽  
Depth Learning

The change of international trade goods exchange rate transaction has an impact on economic operations and economic stability. Therefore, an international trade goods exchange rate transaction based on fuzzy granulation and in-depth learning is proposed. Based on fuzzy information granulation and BP neural network, this paper analyzes the interest rate evaluation theory. For the future expectation of currency exchange rate, portfolio equilibrium determines the proportional relationship of each component in the portfolio and analyzes the impact of asset price and exchange rate change according to this relationship. Then, it points out the risk evaluation index system, calculates the risk degree of exchange rate transaction of international trade goods, and then evaluates the risk of exchange rate transaction of international trade goods. It completes the research on exchange rate transactions of international trade goods based on fuzzy granulation and in-depth learning. The experimental results show that excessive exchange rate fluctuation will bring the same proportion fluctuation to the asset price in the financial market, and the coordination between exchange rates and the coordination of exchange rate and asset price can promote the steady growth of national economy.

scholarly journals An Empirical Study of the Impact of RMB Exchange Rate Fluctuations on Sino-US Trade

2021 ◽  
Vol 235 ◽  
pp. 01040
Author(s):  
Yatong Ni
Keyword(s):  
Exchange Rate ◽  
Trade Deficit ◽  
Measurement Model ◽  
The United States ◽  
Rmb Exchange Rate ◽  
Exchange Rate Fluctuations ◽  
The Us ◽  
Import And Export ◽  
Exchange Rate Changes ◽  
The Impact

In recent years, the US has urged the yuan to appreciate in order to resolve its trade deficit with China. This article systematically analyzes the basic situation of the RMB exchange rate changes and the development of Sino-US import and export trade in the past 20 years, and uses Eviews to construct a measurement model to confirm that the impact of the RMB exchange rate on Sino-US trade is not as good as the economic development of the importing country The impact is significant, and the intention of the United States to improve the trade deficit by prompting the appreciation of the renminbi is ineffective. It also puts forward the policy recommendations that attach importance to the impact of excessive US consumption on Sino-US trade volume. The US should liberalize strict controls on China’s exports, further optimize the product structure of China’s imports and exports, and establish exchange rate risk prevention mechanisms.

scholarly journals Pengaruh Kurs Rupiah Terhadap Indeks Harga Saham (Studi Pada Indeks Saham Syariah Indonesia Periode 2011-2013)

2015 ◽  
Vol 1 (12) ◽  
pp. 832
Author(s):  
Imam Dwi Saputra ◽  
Leo Herlambang
Keyword(s):  
Exchange Rate ◽  
Stock Price ◽  
Price Index ◽  
Secondary Data ◽  
Regression Result ◽  
Significance Level ◽  
Currency Exchange ◽  
Exchange Rate Fluctuations ◽  
Currency Exchange Rate ◽  
Stock Price Index

Sensitivity of stock market is appeared when the domestic currency exchange rate fluctuations happened. Uncontrolled currency fluctuations will affect the performance of capital market entities which have an impact on stock price movement. This thesis is to determine the effect of exchange rate on ISSI stock price index in the 2011-2013 periods.This thesis uses a quantitative approach to analyze secondary data whichrepresented by exchange rate and ISSI stock price index. Those values are monthly data over the period 2011-2013. This thesis also uses a significance level of 5%.The regression result in this thesis indicates that the exchange rate variable has a significant effect partially on ISSI stock price index in the 2011-2013 periods.

scholarly journals Economic Consequences of Covid-19 Pandemic: An Analysis of Exchange Rate Behaviour

2021 ◽  
Vol 12 (2) ◽  
pp. 258-284
Author(s):  
Maheswar Sethi ◽  
Sakti Ranjan Dash ◽  
Rabindra Kumar Swain ◽  
Seema Das
Keyword(s):  
Exchange Rate ◽  
Economic Consequences ◽  
Asymmetric Effect ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Effect Regression ◽  
Asymmetric Impact ◽  
The Exchange Rate ◽  
The Impact ◽  
Rate Behaviour

This paper examines the effect of Covid-19 on currency exchange rate behaviour by taking a sample of 37 countries over a period from 4th January 2020 to 30th April 2021. Three variables, such as daily confirmed cases, daily deaths, and the world pandemic uncertainty index (WPUI), are taken as the measure of Covid-19. By applying fixed-effect regression, the study documents that the exchange rate behaves positively to the Covid-19 outbreak, particularly to daily confirmed cases and daily deaths, which implies that the value of other currencies against the US dollar has been depreciated. However, the impact of WPUI is insignificant. On studying the time-varying impact of the pandemic, the study reveals that the Covid-19 has an asymmetric impact on exchange rate over different time frames. Further, it is observed that though daily confirmed cases and daily deaths show a uniform effect, WPUI puts an asymmetric effect on the exchange rate owing to the nature of economies.

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