Option is derivative instrument that have investment benefit and provide return for the writer and the holder. Option price determination is affected by risk factor. However in Black-Scholes model option price is determined without arbitrage risk affection so it is impossible to take return. In this study, option price formula is constructed to be more represent the condition of financial marke...

This paper develops a Bertrand price competition model with di erentiated goods in which export subsidies are compared to exchange rate depreciation as di erent government policies for promoting exports. National governments may wish to help domestic rms to expand market shares in pro table areas and might do this through either one of these two tools.Their e ects on equilibrium values are anal...

Acemoglu, D., 34n1, 270 Aflatoxins, 50, 66 Africa commodity characteristics in, 234 comparative perspective of commodity characteristics overview, 221, 224 non-traditional export crops, 223–224 staple food crops, 221–222 traditional export crops, 222–223 food exports from, 4, 50 income, effect on high standards economy, 148 liberalization in overview, 9, 235 liberalization process, 240 non-trad...

In this paper I estimate the labor demand response of Hungarian exporting firms to real exchange rate movements. The use of firm level export/import data enables me to separate two channels through which the exchange rate affects labor demand. First, a real depreciation raises the forint-equivalent price of foreign competitors, thereby boosting demand for the firm’s export and, hence, the firm’...

* This research was funded by a post-doctoral research grant from “Fundação para a Ciência e Tecnologia” (Portugal / European Union) to the first author. The authors acknowledge the support of the Warwick Business School (UK) in conducting the survey and the helpful comments of Albert Menkveld and Carmen Lages. The collaboration of over 600 Portuguese managers and the help of many researchers w...

In this paper we examine entry decision of a foreign firm when the input market in the host-country is imperfect competitive and production requires non-tradable inputs. We show that the foreign firm’s strategic choice about FDI and export may affect the price of input in the host-country significantly and provides a rationale for doing both FDI and export at the same time. So, unlike the previ...

Economic development in Taiwan over the past four decades has been characterized by rapid growth, export expansion, stable prices, full employment, and fairly equitable income distribution. In the natural course of its development, the economy underwent significant long-term changes in terms of production, trade, and employment. Although the two oil crises of the 1970s had short-term impacts on...

Abstract: In this paper we investigate the effects of volatility of the fundamental determinants of trade on trade flows in México during the period 1991-2008. Our import and export functions are based on the well known imperfect substitute goods model of trade. We focus on the effects of real exchange rate as well as measures of relative prices and real income and their associated conditional ...

We consider a future self-organized energy community that is composed of “prosumer” households that can autonomously generate, store, import and export power, and also selfishly strive to minimize their cost by adjusting their load profiles using the flexibly of their distributed storage. In such scenario, the aggregate load profile of the selforganized community is likely to be volatile due to...

In this paper the heterogeneous firms and trade literature is extended by integrating quality of inputs and outputs in a food and agricultural setting. Recently, Sexton (2013) has suggested that intermediate agricultural input quality is critical in food processing firms’ output quality and pricing decisions. The results presented in this paper indicate that intermediate agricultural input qual...