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Pass-Through and Exposure

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Author Info
Bodnar, G.M.
Dumas, B.
Marston, R.C.
Abstract

Exchange rates can have a major influence on the pricing behaviour and profitability of exporting and importing firms. Firms differ in the extent to which they "pass-through" changes in exchange rates into the prices they charge in foreign markets. They also differ in their "exposure" to exchange rates -- the responsiveness of their profits to change in exchange rates. Previous papers have studied either pass-through or exposure, but none has studied these two phenomena together.

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Publisher Info
Paper provided by Wharton School - Weiss Center for International Financial Research in its series Weiss Center Working Papers with number 98-01.

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Length: 46 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:pennif:98-01

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Related research
Keywords: EXCHANGE RATE ; PRICING ; INDUSTRY;

Find related papers by JEL classification:
F3 - International Economics - - International Finance
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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  1. José Manuel Campa & Linda S. Goldberg, 1999. "Employment versus Wage Adjustment and the U.S. Dollar," Working Papers 99-07, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-21.


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