Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317665 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Business Economics and Management (JBEM) [ISSN:] 2029-4433 [Volume:] 24 [Issue:] 6 [Year:] 2023 [Pages:] 1102-1118
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
The purpose of this article is to examine the impact of RMB exchange rate fluctuations on the strategic decisions of Chinese companies in the context of their export activity in the foreign market. The research methodology is based on integrated annual customs data for the period 2014-2021 and econometric analysis. The upward fluctuations in the level of the real effective exchange rate of the RMB encourage companies to withdraw from foreign markets and lead to a significant slowdown in companies' export market entry. At the same time, companies with foreign capital are able to cope with currency risks to a much greater extent than companies with state and private participation. The analysis of company characteristics based on the principle of differentiation shows that company performance, profit volume, business scale, and export experience of a company can lead to a delay in the favorable effect of RMB appreciation for companies leaving export markets. This article provides valuable guidance for companies on strategies to avoid currency risks and make effective management decisions in the context of exports.
Subjects: 
business
export
foreign exchange market
modelling
money supply
strategy
JEL: 
G14
G18
H10
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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