This paper studies a Cournot duopoly in international trade so that the firms are exposed to exchange rate risk. A … hedging opportunity is introduced by a forward market where the foreign currency can be traded on. We investigate two settings …: First we assume that hedging and output decisions are taken simultaneously. We show that hedging is just done for risk …

This paper examines the optimal production, export allocation and hedging decisions of a risk-averse international firm … each currency. Then, both production and export allocation are separable. Hedging with forward contracts depends on risk … decisions are analyzed under two scenarios. In the first, there is a forward market for one currency only. Then, the export …

conditions under which export production is stimulated when the hedging device becomes more effective. In any case the exporting …We study the impact of exchange rate risk upon export production within an emerging economy lacking in currency forward … firm benefits from imperfectly hedging exchange rate risk. …

Abstracting from self-protection and self-insurance e ects of export produc-tion choices, exporting rms usually have … achieved from the existence of risk sharing markets are the separationtheorem and the and full-hedging theorem. This note … examines the optimalproduction for exports and hedging decisions of a risk-averse rm facing bothhedgeable exchange rate risk …

exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal … result in higher or lower export production. …

Based upon the foundations of mean-variance decision-making theory, we demonstrate that a change in the risk situation … of an international enterprise open currency position does not inevitably require a corresponding hedging accommodation …. Given a new risk situation, whether a revision of the hedging-strategy is appropriate will depend upon the elasticity of …

essential in analyzing optimal hedging and export decisions. When the spot exchange rate and the futures exchange rate are …

correlated to the foreign currency. By indirectly hedging its foreign exchange exposure the firm can increase its economic … welfare. Furthermore export production increases and promotes international trade of the developing country if the spot rate …

rate in question. The study investigates the implications of hedging exchange rate risk of less common currencies for an …