This paper empirically examines the impacts of exchange rate volatility on the location choice by Japanese multinational corporations (MNCs) and their intra-firm trade. We use affiliate-level data for Japanese MNCs for 1995, 1998 and 2001. We found that high exchange rate volatility discourages...

This paper empirically examines the firm-specific exchange rate exposure of Japanese multinational corporations (MNC). Although financial theory strongly supports that exchange rate movement should affect the value of a multinational corporation, most previous studies failed to document...