This paper investigates the relationship between exchange rate uncertainty and the location of US foreign direct investment in Europe. We adopt a mean-variance approach to the standard q theory of investment in order to highlight the impact of exchange rate volatility and exchange rate correlation on investment. A firm concerned with both maximizing profits and minimizing risk would exploit any...

abstract: central banks have long been interested in obtaining precise estimations of money demand given the fact that the evolution of money demand plays a key role over several monetary variables. one implication of currency substitution is that the exchange rate could serve as another determinant of the demand for money. due to the recent currency crisis in iran, it would be important to inv...

Different from the conventional methods of probability theory, this paper discusses the currency option pricing problem within the framework of uncertainty theory. Considering the uncertain factors in the financial market, we propose a new uncertain currency model with floating interest rates based on the assumption that the domestic interest rate, the foreign interest rate and the exchange rat...

â â â  given companies’ dynamic responses to expected exchange rate changes, this article improves on current methods of measuring exposure to foreign exchange rate changes by breaking down the spot exchange rate changes into expected changes and unexpected changes. the currency risk exposure coefficients resulting from an empirical analysis of shanghai stock exchange a share listed companies...

In this study, we investigate the relationship between uncertainty and trust in exogenous shifts in modes of social exchange (i.e., those that are not initiated by the individuals in a given exchange system). We explore how transitions from a high uncertainty environment (reciprocal exchange) to lower-uncertainty environments (nonbinding or binding negotiated exchange) affect the level of trust...

abstract main objective of this paper is to evaluate supportive policies of beef producers during the first, second, third and fourth terms of economic, social, and cultural development plans (1989 - 2008).to evaluate the policies, the producers support estimate(pse) index and other indicators (pse %, npc & nac) were used. furthermore, percentages of pse were calculated in different scenarios o...

Empirical evidences show that Japan-based companies moved their major operations to the USA due to the currency appreciation of Japanese Yen in 1980s. However, the multinational firms moving their operations abroad still face both the risk of foreign price and the risk of foreign exchange rate. According to the purchasing power parity (PPP) and interest rate parity (IRP), the foreign exchange r...