Managing Currency Risk

Takatoshi Ito (), Satoshi Koibuchi, Kiyotaka Sato and Junko Shimizu

in Books from Edward Elgar Publishing

Abstract: This book demonstrates how exporters’ decisions regarding choice of invoice currency can be influenced by many factors including firm size, product competitiveness, intra/inter-firm trades, and the geography of export destination. The aim is to enhance our understanding of exporters’ behavior in terms of managing currency risk. It contains detailed research and insightful data focusing on Japanese exporters and shows how they face an important trade-off in choosing the invoice currency. If exports are invoiced in yen, then exchange rate fluctuations will pass through to retail prices ultimately affecting sales volumes. However, if they choose to invoice in the importer’s currency, then sales volumes are largely unchanged.

Keywords: Asian Studies; Economics and Finance (search for similar items in EconPapers)
Date: 2018
ISBN: 9781785360121
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