A low percentage of firms depicting exposure to foreign exchange rates is one of the seriously researched topic in the realm of Foreign Exchange Risk and its Management. Owing to its counter intuitive empirical results, it has also been referred to as Currency Exposure Puzzle. This paper, one of...

In the literature on exports and investment, most productive firms are seen to invest abroad. In the Helpman et al. (2004) model, costs of transportation play a critical role in the decision about whether to serve foreign customers by exporting, or by producing abroad. We consider the case of...

In the literature on exports and investment, most productive firms are seen to invest abroad. In the Helpman et al. (2004) model, costs of transportation play a critical role in the decision about whether to serve foreign customers by exporting, or by producing abroad. We consider the case of...