Podcasts Government Asia's Developing Future How does exchange rate volatility influence exports?

How does exchange rate volatility influence exports?

Published: Sept. 4, 2017, 1:12 a.m.

b'The debate about the influence of exchange rates volatility on trade is intensifying, as US President Donald Trump attempts to blame the People\\u2019s Republic of China\\u2019s exchange rate policy for the US current account deficit. \\n\\nThe link between exchange rates and trade is a complex one, and while there are several analyses of this relationship, none are considered definitive. \\n\\nSome experts say exchange rate volatility increases the uncertainty of companies about potential export profit, leading them to reduce exports, but that is theoretical. Others say a significant proportion of companies will increase exports, aiming to offset the loss on each exported unit. The latter explanation is strongly contested.\\n\\nRead the transcript\\nhttp://bit.ly/2eTI5cI\\n\\nRead the blog post \\nhttps://www.asiapathways-adbi.org/2017/04/how-does-exchange-rate-volatility-affect-value-added-and-gross-trade/\\n\\nAuthor\\nYizhe Daniel Xie is a PhD candidate at the Graduate School of Asia-Pacific Studies, Waseda University, and a non-resident fellow at the CSIS Pacific Forum.'