IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v9y1978i1p129-130.html
   My bibliography  Save this article

The Impact of Inflation and Devaluation on the Selection of an International Borrowing Source: A Reply

Author

Listed:
  • James V Jucker

    (Stanford University)

Abstract

Rolf Mirus starts his note on international borrowing by describing the “approach“ which Clovis de Faro and I took in our JIBS article as that of “… picking the [borrowing] source with least expected cost without consideration of the risk involved.“111 Rolf Mirus, “The Impact of Inflation and Devalution on the Selection of an International Borrowing Source: A Note,” Journal of International Business Studies, this issue. This characterization of our work is somewhat unfortunate, since we assumed, for purposes of clarity and simplicity, that the borrowing problems considered were situated in a deterministic (i.e., riskless) world. Specifically, we assumed that “… the inflation rates and devaluation rates expected during a loan period are always realized.”222 Clovis de Faro and James V. Jucker, “The impact of Inflation and Devaluation on the Selection of an International Borrowing Source,” Journal of International Business Studies 4 (Fall 1973), pp. 97-104. Perhaps we should have repeated this assumption at the end of the paper and emphasized the limitations that this places on our results. Had we done this we might well have included something along the lines of the following: "That a firm in a risky world may refrain from raising all of its required funds in a lower cost foreign market is not contrary to the simple decision rule developed here, for our rule was developed for a riskless world.© 1978 JIBS. Journal of International Business Studies (1978) 9, 129–130

Suggested Citation

  • James V Jucker, 1978. "The Impact of Inflation and Devaluation on the Selection of an International Borrowing Source: A Reply," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(1), pages 129-130, March.
  • Handle: RePEc:pal:jintbs:v:9:y:1978:i:1:p:129-130
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jibs/journal/v9/n1/pdf/8490877a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/jibs/journal/v9/n1/full/8490877a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:9:y:1978:i:1:p:129-130. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.