impact of exchange rate risk on exports. Based on a flexible utility function that incorporates all possible risk preferences …

; export production ; futures markets …

We study the impact of exchange rate risk upon export production within an emerging economy lacking in currency forward … conditions under which export production is stimulated when the hedging device becomes more effective. In any case the exporting … firm benefits from imperfectly hedging exchange rate risk. -- Emerging markets ; transition economy ; export ; exchange …

. Furthermore we find that no separation result can be stated. -- Exchange Rate risk ; hedging ; exports ; duopoly …

interpreted as an option. An enterprise will opt to export if the profits obtained from exporting under given exchange rate …, an enterprise will choose not to export. By virtue of a favorable exchange rate situation it may be more advantageous to … may still lead to greater export trade volumes. -- Export ; Exchange Rate Volatility ; Risk Aversion ; Real Option …