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Journal of International Business Studies Vol. 30 No. 2 1999

Exchange Rate Pass-Through and International Pricing Strategy: A Conceptual Framework and Research Propositions

Terry Clark1; Masaaki Kotabe2,3; Dan Rajaratnam4

1 Southern Illinois University · 2 Temple College · 3 Temple University · 4 Baylor University

Abstract

The extent to which exchange rate fluctuations affect international prices is called “exchange rate pass-through.” This paper develops a conceptual model in explaining how exchange rate fluctuations are channeled into international pricing strategy, and offers research propositions. Our model posits that the extent of exchange rate pass-through in international pricing is affected by the firm's pricing orientation, performance orientation, distribution policy, and brand equity, as well as by exchange rate uncertainty and competitive symmetry.

DOI
10.1057/palgrave.jibs.8490069
Volume
30
Issue
2
Pages
249-268
Language
en
Sources
ris:jibs.ris crossref openalex

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