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Author: Charles Engel
Publisher:
ISBN:
Category : Marketing channels
Languages : en
Pages : 56
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Book Description
We find evidence that the law of one price (LOOP) holds more nearly for country pairs that are within geographic regions than for country pairs that are not. These findings are established using disaggregated consumer price data from 23 countries (including data from eight North American cities). We find that failures of LOOP are closely related to nominal exchange rate variability, suggesting a link to sticky nominal prices. We also find that distance can explain failures of LOOP, suggesting the failures arise from imperfect market integration. However, these two sources do not explain all of the failure of LOOP. We speculate that integrated marketing and distribution systems within regions cause LOOP to hold more nearly intraregionally. We present a formal model of marketing and distribution to illustrate this hypothesis.
Author: Jeffrey A. Frankel
Publisher: University of Chicago Press
ISBN: 0226260224
Category : Business & Economics
Languages : en
Pages : 295
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Book Description
Regional economic arrangements such as free trade areas (FTAs), customs unions, and currency blocs, have become increasingly prevalent in the world economy. Both pervasive and controversial, regionalization has some economists optimistic about the opportunities it creates and others fearful that it may corrupt fragile efforts to encourage global free trade. Including both empirical and theoretical studies, this volume addresses several important questions: Why do countries adopt FTAs and other regional trading arrangements? To what extent have existing regional arrangements actually affected patterns of trade? What are the welfare effects of such arrangements? Several chapters explore the economic effects of regional arrangements on patterns of trade, either on price differentials or via the gravity model on bilateral trade flows. In addition, this book examines the theoretical foundation of the gravity model. Making extensive use of the gravity model of bilateral trade, several chapters explore the economic effects of regional arrangements. In addition, this book examines the theoretical foundation of the gravity model.
Author: Charles Engel
Publisher:
ISBN:
Category : Marketing channels
Languages : en
Pages : 56
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Book Description
We find evidence that the law of one price (LOOP) holds more nearly for country pairs that are within geographic regions than for country pairs that are not. These findings are established using disaggregated consumer price data from 23 countries (including data from eight North American cities). We find that failures of LOOP are closely related to nominal exchange rate variability, suggesting a link to sticky nominal prices. We also find that distance can explain failures of LOOP, suggesting the failures arise from imperfect market integration. However, these two sources do not explain all of the failure of LOOP. We speculate that integrated marketing and distribution systems within regions cause LOOP to hold more nearly intraregionally. We present a formal model of marketing and distribution to illustrate this hypothesis.
Author: Charles Engel
Publisher:
ISBN:
Category : Consumer goods
Languages : en
Pages : 34
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Book Description
We use new disaggregated data on consumer prices to determine why there is variability in prices of similar goods across U.S. cities. We address questions similar to those that have arisen in the international context: is this variability purely a result of market segmentation or do sticky nominal prices play a role? We also examine how the degree of tradability of a good influences price variability. Surprisingly, we find that variability is larger for traded-goods. We attribute this finding to greater price stickiness for non-traded goods. Distance between cities accounts for a significant amount of the variation in prices between pairs of cities. But we also find that nominal price stickiness plays an even more significant role.
Author: Jessica James
Publisher: John Wiley & Sons
ISBN: 1118445775
Category : Business & Economics
Languages : en
Pages : 674
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Book Description
Praise for Handbook of Exchange Rates “This book is remarkable. I expect it to become the anchor reference for people working in the foreign exchange field.” —Richard K. Lyons, Dean and Professor of Finance, Haas School of Business, University of California Berkeley “It is quite easily the most wide ranging treaty of expertise on the forex market I have ever come across. I will be keeping a copy close to my fingertips.” —Jim O’Neill, Chairman, Goldman Sachs Asset Management How should we evaluate the forecasting power of models? What are appropriate loss functions for major market participants? Is the exchange rate the only means of adjustment? Handbook of Exchange Rates answers these questions and many more, equipping readers with the relevant concepts and policies for working in today’s international economic climate. Featuring contributions written by leading specialists from the global financial arena, this handbook provides a collection of original ideas on foreign exchange (FX) rates in four succinct sections: • Overview introduces the history of the FX market and exchange rate regimes, discussing key instruments in the trading environment as well as macro and micro approaches to FX determination. • Exchange Rate Models and Methods focuses on forecasting exchange rates, featuring methodological contributions on the statistical methods for evaluating forecast performance, parity relationships, fair value models, and flow–based models. • FX Markets and Products outlines active currency management, currency hedging, hedge accounting; high frequency and algorithmic trading in FX; and FX strategy-based products. • FX Markets and Policy explores the current policies in place in global markets and presents a framework for analyzing financial crises. Throughout the book, topics are explored in-depth alongside their founding principles. Each chapter uses real-world examples from the financial industry and concludes with a summary that outlines key points and concepts. Handbook of Exchange Rates is an essential reference for fund managers and investors as well as practitioners and researchers working in finance, banking, business, and econometrics. The book also serves as a valuable supplement for courses on economics, business, and international finance at the upper-undergraduate and graduate levels.
Author: David C. Parsley
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 38
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Book Description
Crossing national borders, adds significantly to price dispersion. This study of prices in Japan and the United States finds that a susbstantial part of that border effect is attributable to distance, shipping costs, exchange rates, and relative variability in wages.
Author: Gary Clyde Hufbauer
Publisher: Peterson Institute
ISBN: 9780881323337
Category : Business & Economics
Languages : en
Pages : 132
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Book Description
Price divergence is readily apparent to anyone who shops. Travelers from Manchester to London, or from Chicago to Paris, are hit by sticker shock. Products ranging from London Fog raincoats to Viagra are available over the Internet at half their retail store prices. Common experience tells us that prices for identical products differ between countries, between cities, even between neighboring shops. On the other hand, common experience also tells us that open markets and greater competition will force a degree of price convergence, if not identical prices. This monograph presents speculative calculations that illustrate potential benefits from price convergence between countries. The authors take a fresh look at global economic integration by examining existing price divergence, and possible price convergence, across a range of consumer goods and then calculate the potential benefits of price convergence on a country-by-country basis and for the world as a whole. This study examines the potential benefits from price convergence resulting from more competition and market integration, not perfect competition and market integration. The authors calculate these benefits assuming that the world economy can attain the same degree of competition and market integration-and hence price convergence-as exists within the United States.
Author: David Miles
Publisher: John Wiley & Sons
ISBN: 111999571X
Category : Business & Economics
Languages : en
Pages : 626
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Book Description
Macroeconomics: Understanding the Global Economy, 3rd Edition is to help students – and indeed anyone – understand contemporary and past economic events that shape the world we live in, and at a sophisticated level. But it does so without focusing on mathematical techniques and models for their own sake. Theory is taken seriously – so much so that the authors go to pains to understand the key aspects of theories in a way that will not put people off before they see how theories are useful to analyse issues. The authors believe that theories are essential to better understand the world, thus the book includes a wealth of historic and current episodes and data to both see how theories can help interpret the world and also to judge their validity. Economies today are very inter-connected; what happens in China matters pretty much everywhere; and what happens in one (even small) country in the euro zone has implications for the whole euro area and beyond, consequently Macroeconomics, 3rd Edition adopts a very international focus.
Author: OECD
Publisher: OECD Publishing
ISBN: 9264084363
Category :
Languages : en
Pages : 235
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Book Description
This second edition of the OECD Economic Globalisation Indicators presents a broad range of indicators on trade, foreign direct investment, the economic activity of multinational firms, and the internationalisation of technology.
Author: John F. Helliwell
Publisher: Brookings Institution Press
ISBN: 9780815791485
Category : Business & Economics
Languages : en
Pages : 196
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Book Description
It is widely believed that globalization has proceeded to the point where international economic linkages are as strong as those within nations. Struck by research suggesting that this perception is dramatically mistaken, John Helliwell spent three years assessing the evidence. The results are reported in this book, the latest in Brookings' Integrating National Economies series. It provides the most systematic measurements yet available of the relative importance of global and national economic ties. The original finding, based on a gravity model of trade flows, was that 1988 trade linkages between Canadian provinces were twenty times as dense as those between Canadian provinces and U.S. states of similar size and distance. A much longer and more detailed body of data is used to expand and explain these findings. Data for trade within and among OECD and some developing countries are used to show that the Canadian-U.S. results are applicable to other countries. Helliwell then surveys and extends the evidence relating to price linkages, capital mobility, migration, and knowledge spillovers, finding in all cases very large border effects. The evidence offers a challenge to economists, policymakers, and citizens to explain why national economies have so much staying power, and to consider whether this is a good or bad thing. Helliwell argues that since large and small industrial economies have similar levels of income, there are likely to be diminishing returns from increases in globalization beyond levels sufficient to permit the ready exploitation of comparative advantages in trade, and relatively easy access to knowledge developed elsewhere.
Author: Geert Bekaert
Publisher: Cambridge University Press
ISBN: 110854715X
Category : Business & Economics
Languages : en
Pages : 1047
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Book Description
This new and fully updated edition of International Financial Management blends theory, data analysis, examples and practical case situations to equip students and business leaders with the analytical tools they need to make informed financial decisions and manage the risks that businesses face in today's competitive global environment. Combining theory and practice, the authors offer the reader a multitude of real-world examples and case studies, emphasising fundamental concepts, principles and analytical theories to enable students to understand not only what to do when confronted with an international financial decision, but why that choice is the correct one. Features include: real data analysis - all fully updated for the third edition; extended cases illustrating practical application of theory; point-counterpoints offering insight into contentious issues; concept boxes that explore and illustrate key concepts; and end-of-chapter questions. Suitable for M.B.A and advanced undergraduate business students taking a course in international financial management or international finance.
