Invoicing under exchange rate risk : the exporting firm
DOI:
https://doi.org/10.18559/ebr.2010.2.896Keywords:
Currency risk, Trade, Accounting, Export, Ryzyko walutowe, Handel, Rachunkowość, EksportAbstract
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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Copyright (c) 2010 Poznań University of Economics and Business
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