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Pass-Through and Exposure

Author

Listed:
  • 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.

Suggested Citation

  • Bodnar, G.M. & Dumas, B. & Marston, R.C., 1998. "Pass-Through and Exposure," Weiss Center Working Papers 98-01, Wharton School - Weiss Center for International Financial Research.
    • Handle: RePEc:fth:pennif:98-01
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    EXCHANGE RATE ; PRICING ; INDUSTRY;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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