Imperfect Hedging and Export Production

摘要: Firms engaged in international operations are highly interested developing ways to protect themselves from exchange rate risk. The incentive for risk management comes the enormous volatility of floating foreign rates.' Our study shows that an exporting firm can benefit hedging risks even when no perfect hedge is possible. Since reality, not every currency traded a futures market [7, Chap. 15], uses contracts with other underlying assets whose spot prices correlated rate. In real world must often be accomplished by using on different deliverable instruments. Such may result imperfect as shown Anderson and Danthine [1], Eaker Grant [11], Dellas Zilberfarb [9], Broll, Wahl Zilcha [6]. It has been recent publications [12; 8; 15; 13; 23; 16; 2; 14; 5; 18; 22] facing eliminate this altogether if it use forward market, another financial asset or portfolio which perfectly absence such markets, reduce its income engaging activity exchange. Recent studies behavior under uncertainty examine influence markets export decision. These papers derive two major theorems: One "separation theorem" states that, exist, firm's production decision determined solely technology input-output prices, including prices. This holds gain contract revenue. theorem "full asserts unbiased completely avoids entering into optimum contracts.