Given that a multinational enterprise can react flexibly upon exchange rate movements, international trade flows may be interpreted as an option. An enterprise will opt to export if the profits obtained from exporting under given exchange rate developments are greater than if foreign subsidiary...

Summary The inherent technical capability of a domestic economy has a significant effect upon trade. In addition, the innovation achievement potential of foreign countries and their companies may also enhance a given situation. International trade and foreign direct investment (FDI) provide...

In this paper, we present a multi-stage stochastic programming model that integrates financial hedging decisions into the planning of strategic production networks under uncertain exchange rates and product demands. This model considers the expenses of production plants and the revenues of...