This paper develops a real options model to investigate the relationship between exchange rate movements and the occurrence of price dumping. Our results reveal that the effect of exchange rate volatility on the probability of dumping occurrence is ambiguous, depending on the level of exchange rate. The appreciation of the importing country’s currency tends to have a positive impact on the prob...

Exchange rate volatility, or a continuous fluctuation in the currency has been major concern recent years due to its impact on economic activities. No wonder concerns have raised regarding connection between exchange fluctuations and their effects overall economy. The motivation for study is based fact that most emerging economies experiencing inflationary tendencies are more likely experience ...