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