International Business Annotated Bibliography

Mulugetta, A., Mulugetta, Y. and Tessema, A. (2016). Competitive Currency Devaluations, Quantitative Easing and Volatility of Exchange Rates. Journal of International Business Research, 15(1), pp. 15-31.

This paper uses a descriptive study to examine the exchange rate volatility before, during and after the great depression using forward and spot exchange rates relationships regarding direct and indirect market interventions used by central banks in both developed and emerging economies. The paper uses a panel of nine developed and nine emerging nations to ascertain the significance of multiplicative terms of the dichotomous variable and foreign exchange reserves, money supplies, and interest rates as the monetary policy variables. The authors use the Thompson-Reuters’ Data Stream to determine the key macro variables. The authors show that interventions by central banks during the recession period where highly effective when monetary policy tools were applied in the foreign exchange markets. The paper finds exchange rates to be more volatile for emerging economies. Using panel data on the emerging markets, however, does not provide clear interventions. The authors use scholarly sources to support the research arguments and thus provide credibility. The findings of the study can be used give the expected direction of interest rates in developed economies.

Calantone, R. J., Cavusgil, S. T., Schmidt, J. B. and Shin, G. (2004). Internationalization and the Dynamics of Product Adaptation— an Empirical Investigation. J Prod Innov Manag, 21, pp. 185–198.

This paper investigates the motivation of firms to adapting products for export markets and the performance implications arising thereof. The authors use survey mails in this quantitative survey to gather information from managers in both South Korean and theUnited States. Data is analyzed using structural equation modeling. The authors use scholarly sources to support the research arguments and thus provide credibility. The authors find out that a positive association exists between the product adaptation level o and at the project profitability level. Questionnaires, personal interviews are conducted to arrive at the findings. It is found that U.S. firms are more reactive in adapting products to export markets while South Korean companies re proactive. Responsive market organizations bearing customer-focused practices have greater international product adaptation. However, there were inconsistencies in results of the two surveyed countries. The findings of the paper can be used to create a market-responsive organization and thus help companies catch up with customer market changes thus enhance international business capabilities.

 

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