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Thursday, July 16, 2020 | History

2 edition of Exchange rate and pricing strategies in a model of international duopoly found in the catalog.

Exchange rate and pricing strategies in a model of international duopoly

Paola Caselli

Exchange rate and pricing strategies in a model of international duopoly

by Paola Caselli

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Published by Banca d"Italia in Rome .
Written in English

    Subjects:
  • Duopolies -- Mathematical models.,
  • International business enterprises -- Mathematical models.,
  • Prices -- Mathematical models.,
  • Foreign exchange -- Mathematical models.

  • Edition Notes

    Includes bibliographical references (p. 36-38).

    Statementby Paola Caselli.
    SeriesTemi di discussione del Servizio studi ;, no 148 genn. 1991, Temi di discussione ;, 148.
    Classifications
    LC ClassificationsHG3879 .T46 no. 148, HD2757.25 .T46 no. 148
    The Physical Object
    Pagination38 p. :
    Number of Pages38
    ID Numbers
    Open LibraryOL1614738M
    LC Control Number91155824

    Inflation Targeting and Exchange Rate Management in Less Developed Countries* Prepared by Marco Airaudo, Edward F. Buffie, and Luis-Felipe Zanna Authorized for distribution by Andrew Berg, Prakash Loungani, and Catherine Pattillo March Abstract We analyze coordination of monetary and exchange rate policy in a two-sector model of a.   The contents of these two books is exactly the same. Same topics covered in both books. I made the mistake of purchsing both when I should have only bought Exchange Rate Determination which is priced more decently than the out-of-print version. These used book resellers are selling the Currency forecasting book at a non-sense exorbitant s: 5.

    Since , the U.S. dollar has floated freely against other major world currencies. The Federal Reserve (Fed) no longer directly manages the dollar’s exchange rate with any other currency, although some countries, such as China, fix or control their own currency’s exchange rate relative to the Fed uses interest rate policy and, since , direct management of the supply of. International Duopoly with Tariffs (PDF) This paper presents a model in which firms are price setters who anticipate exchange rate changes. In equilibrium, firms' strategies incorporate expectations about the exchange rate consistently and are best responses to the strategies of all others in the world market. This study examines the.

    In Chapter 2 “Strategic Planning” we noted that factors in the economic environment include interest rates and unemployment levels. When the economy is weak and many people are unemployed, companies often lower their prices. In international markets, currency exchange rates also affect pricing decisions. Outline of This Book 49 Competitive Advantage and Strategic Models Generic Strategies for Creating Competitive Advantage Exchange-Rate Clauses Pricing in an Inflationary Environment Government Controls and Subsidies Competitive Behavior


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Exchange rate and pricing strategies in a model of international duopoly by Paola Caselli Download PDF EPUB FB2

Optimal Capacity Investment, and Pricing across International Markets under Exchange Rate Uncertainty and Duopoly Competition Preprint (PDF Available). We find that an empirical model of an imperfectly applied law of one price outperforms a simple competitive, pricing-to-market model of pricing.

Retail exchange rate pass-through rates between. [eng] An international duopoly model under exchange rate uncertainty. The implications of exchange rate uncertainty for the strategic interactions of a Cournot duopoly, which consists of an international firm and its local competitor in a foreign market, are explored in a framework where production decisions are made ex ante, while exports are determined after the exchange rate becomes known.

We consider duopoly models where firms make decisions on capacity, production, and price under demand uncertainty. Capacity and price decisions are made, respectively, ex ante and ex post demand realizations.

The interplay between the timings of demand realization and production decision endows firms with different by: Therefore, this exchange rate implies the price of a euro in dollars.

Certain forces affect the demand for and supply of dollars, or of any other currency, in foreign exchange markets. The demand–supply model of exchange rate determination implies that the equilibrium exchange rate changes when the factors that affect the demand and supply.

Chapter 4, “International Arbitrage,” shows how arbitrage influ-ences currency exchange rates in light of international interest rate and inflation differences. Specifically, the chapter explains how foreign exchange rates are structured through absolute pur-chasing power parity, relative purchasing power parity, and cov-ered interest rate.

A carry trade is a trading strategy that involves borrowing at a low interest rate and investing in an asset that provides a higher rate of return. more International Currency Markets. At OANDA we offer two pricing options: spread-only and core pricing plus commission. Our pricing models are clear and transparent.

You can choose to pay the spread with our spread-only pricing option or access lower spreads with commissions with our core pricing plus commission model. The aim of this research is to study the effects of real exchange rates on the long-term ownership strategies of production facilities of firms entering foreign markets.

Among the strategies considered are exporting (EXP), joint ventures with local partners (JV), and wholly owned production facilities (WOS) in the foreign country. predominant method of measuring a firm’s exchange rate risk exposure, and examines the main advantages and disadvantages of various exchange rate risk management strategies, including tactical versus strategical and passive versus active hedging.

In addition, it outlines a set of widely accepted. Exchange rate pass-through and pricing-to-market: an example If a German exporter produces name brand car in Germany and sells in the U.S.

Production cost is DM20, Sell price: DM25, Profit margin: (price - cost)/price = 20% Exchange rate: $/DM Price in dollars: $10, Suppose the exchange rate changes from $/DM to $/DM.

Bertola, Giuseppe () "Continuous-time models of exchange rates and intervention," in Handbook of International Macroeconomics, ed. Frederik van der Ploeg, forthcoming. Brander, James () "Intra-industry trade in identical commodities,' Journal of International Economics, 11, The dollar gets stronger when its exchange rate rises relative to other currencies like the Chinese yuan and the European Union’s euro.

As measured by the Real Trade-Weighted U.S. Dollar Index published by the Federal Reserve Bank of St. Louis’ FRED database, the all-time high for the dollar was in Marchwhen the Fed raised short-term interest rates to 9 percent to combat. Praise for Handbook of Exchange Rates “This book is remarkable.

I expect it to become the anchor reference for people working in the foreign exchange field.” ―Richard K.

Lyons, Dean and Professor of Finance, Haas School of Business, University of California Berkeley “It is quite easily the most wide ranging treaty of expertise on the forex market I have ever come s: 4. The Making of Exchange Rate Policy in the s Although the s were the decade when foreign exchange rates broke free of the confines of the Bretton Woods system, under which governments since had been committed to keeping them fixed, the s were the decade when large movements in exchange rates first became a serious issue in the.

relationship between exchange rate misalignment and international trade (Staiger and Skyes, ). Of particular importance is the issue that part of the undervaluation or overvaluation of the exchange rate is often absorbed by firms which do not fully adjust their price.

Exchange Rate The purchase of a put option is essentially a bearish transaction with limited downside risk. If the market should decline below the strike price, the put is in-the-money and one may exercise the put by selling currency at the exercise price even when the exchange rate is less the exercise price.

Book Description International Financial Management blends the core concepts and theories of international finance with practical applications and examples. With its coverage of real-world data, recent developments in the world of finance, and examples of financial and economic practices and policies in the Indian as well as the global context, the book is designed to help the reader.

29 Exchange Rates and International Capital Flows. which led to the Boeing-Airbus oligopoly (also called a duopoly) for large passenger aircraft.

to 5, Thus, the members of a cartel can discipline each other to stick to the pre-agreed levels of quantity and price through a strategy of matching all price cuts but not matching any. “Determinants of exchange rate movements: a review - A guide to the factors that help to explain fluctuations in exchange rates under a floating regime.” Accessed Ma Accessed.

Oligopoly Defining and measuring oligopoly. An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated.

Although only a few firms dominate, it is possible that many small firms may also operate in the market.the exchange rate is market-determined, and FX market intervention is only used to slow the rate of change and reduce short-term fluctuations, not to keep exchange rates at a certain target level describe the elasticities approach to how the exchange rate affects a country's balance of trade.4 International Transfer Pricing /14 Preface This book provides general guidance to the reader on a range of transfer pricing issues.

Technical material is updated with each new edition and this book is correct as at 15 September In hard copy form, this /14 edition is .