Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/48162
Authors: 
Broll, Udo
Eckwert, Bernhard
Wong, Kit Pong
Year of Publication: 
2010
Series/Report no.: 
Dresden discussion paper series in economics 08/10
Abstract: 
The paper examines the economic role of market transparency on the decision problems of an international firm. Transparency is described in terms of the informativeness of a publicly observable signal. With higher transparency, the signal conveys more precise information about the random foreign exchange rate. We analyze the interaction between market transparency, ex ante expected production, domestic sales, and exports of the firm. Furthermore, we discuss the welfare implications of more transparency in the foreign exchange market for the firm and domestic consumers.
Subjects: 
Blackwell theorem
information system
transparency
hedging
international trade
JEL: 
F11
F23
G14
G15
Document Type: 
Working Paper

Files in This Item:
File
Size
600.98 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.