We consider an exporting firm facing FX risk. We show that FX options are not used for hedging, if there is no ex-post production flexibility. Hence, in the standard setting of having no ex-post optionality, hedging with forwards is the best choice.The value of FX options for hedging arises as...

Strengthening commitments for export assistance and establishing comprehensive programs to expand export activities of firms are part of the public policies in almost all developed and developing countries. Not only have governments increased the amounts devoted to these actions in recent...

On the eve of planning the foreign trade of India showed an excess of imports over exports. The increase in imports was largely due to pent-up demand of the war and the post war period as a consequence of various control and restrictions. Like other developing countries India faces structural...

Currently, trade in intellectual property is rapidly developing. The article contains analysis of the market by intellectual property objects. The world volume of OIC exports and imports was analyzed, as well as Russia's share in such trade.Structure of foreign trade of the Russian Federation in...

The results of the assessment of the state of trade barriers for the entry of Russian exporters into the foreign market are given. It was established that tariff barriers of Russia with the main trading partners are minimized. An analysis of the level of tariff applied by individual groups of...

This paper provides a detailed description of Hungarian trade data and key patters drawn at the firm and product level. The IEHAS-CEFiG Hungary dataset is an almost universal panel of balance sheet information (1992-2006) merged with firmproductcountry level customs data (1992-2003) taken until...

Available statistics tell us little about the economic consequences of increasing global dispersion of production processes. In order to shed light on the issue, we perform grass roots detective work to uncover the geography of value added in the case of a Nokia N95 smartphone circa 2007. The...

We present a model of risk averse exporting firm subject to liquidity constraints. The firm enters an unbiased futuresmarket to hedge exchange rate risk and may not be able to satisfy high margin calls. Then the firm is forced toprematurely liquidate the futures position. We show that...

What insights can be gained from bringing the theory of the firm to the global economy? I discuss several new features of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade. Among the new features I discuss are the move to...