Invoicing under exchange rate risk : the exporting firm

Authors

  • Udo Broll
  • Frank Fuchs
  • Jack E. Wahl

DOI:

https://doi.org/10.18559/ebr.2010.2.896

Keywords:

Currency risk, Trade, Accounting, Export, Ryzyko walutowe, Handel, Rachunkowość, Eksport

Abstract

The basis for our analysis is a monopolistic risk neutral exporting firm searching for optimum invoicing under exchange rate risk. The exporting firm exposes itself to various risks depending on the selection of the invoicing currency, namely a transaction risk while selecting the currency of the importer (local currency pricing) and an economic risk while selecting the currency of the exporter (producer currency pricing). The resulting risk is different in both cases and can therefore be influenced by the selection of the invoicing currency. (original abstract)

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Published

2010-06-30

How to Cite

Broll, U., Fuchs, F., & Wahl, J. E. (2010). Invoicing under exchange rate risk : the exporting firm. Economics and Business Review, 10(2), 5–14. https://doi.org/10.18559/ebr.2010.2.896

Issue

Vol. 10 No. 2 (2010)

Section

Research article- regular issue

License

Copyright (c) 2010 Poznań University of Economics and Business

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.