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Why Do Japanese Giant Trading Companies Prefer Foreign Currency to Japanese Yen?: A Supplementary Note

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  • Lin, Chung-Cheng

Abstract

This note extends the Chen and Chiang (1992) analysis to examine the possibility that trades may be denominated in the currency of the third country. Two main conclusions are found in this note. First, the quantities of trade and employment are still invariant to invoicing strategies chosen. Second, the currency of the trading partner may not be chosen by the monopolistic trader. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Lin, Chung-Cheng, 1996. "Why Do Japanese Giant Trading Companies Prefer Foreign Currency to Japanese Yen?: A Supplementary Note," Review of Quantitative Finance and Accounting, Springer, vol. 6(2), pages 161-165, March.
  • Handle: RePEc:kap:rqfnac:v:6:y:1996:i:2:p:161-65
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    Cited by:

    1. Mahmudul Anam & Ghulam Hussain Anjum & Shin-Hwan Chiang, 2015. "Optimum choice of invoice currency with correlated exchange rates-super-†," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(8), pages 1117-1129, December.

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