Pass-Through and Exposure
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Abstract
Exchange rates can have a major influence on the pricing behaviour and profitability of exporting and importing firms. Firms differ in the extent to which they "pass-through" changes in exchange rates into the prices they charge in foreign markets. They also differ in their "exposure" to exchange rates -- the responsiveness of their profits to change in exchange rates. Previous papers have studied either pass-through or exposure, but none has studied these two phenomena together. (This abstract was borrowed from another version of this item.)Keywords
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