Current Volume 9
The Impact of Exchange Rate Volatility on Trade in Global Value Chains: A Sectoral Analysis
Abstract
Fluctuations in exchange rates have a strong impact on international trade. When the value of a country’s currency rises or falls compared to others, it directly affects the cost of goods and services traded across borders. For example, if a country’s currency strengthens, its exports become more expensive for foreign buyers, which might reduce demand. On the other hand, a weaker currency can make exports cheaper and more attractive but make imports costlier. This study looks at how changes in exchange rates influence global trade activities. It covers both the economic theories behind this relationship and real-world data to show how businesses and governments are affected. One key issue is that unpredictable exchange rates can create uncertainty for companies involved in global trade. Exporters and importers may find it difficult to plan their prices, budgets, and profits when currency values keep changing. The paper also discusses how this uncertainty can change a country’s trade position. Some nations may lose their competitive edge if their currency is too strong for too long. In response, companies may look for alternative markets, adjust their pricing strategies, or shift production to different countries. Additionally, the study highlights what governments and businesses do to manage these risks. This includes using financial tools like hedging, adopting flexible policies, or setting up agreements that reduce exchange rate instability.
Keywords
Exchange Rate Fluctuations, International Trade, Currency Volatility, Trade Balance, Export Competitiveness, Foreign Exchange Risk, Global Trade Dynamics
Citations
IRE Journals:
Jhutan Shil, Arun Kumar Giri, Dr. Amit Saini "The Impact of Exchange Rate Volatility on Trade in Global Value Chains: A Sectoral Analysis" Iconic Research And Engineering Journals Volume 9 Issue 11 2026 Page 1252-1259 https://doi.org/10.64388/IREV9I11-1717747
IEEE:
Jhutan Shil, Arun Kumar Giri, Dr. Amit Saini
"The Impact of Exchange Rate Volatility on Trade in Global Value Chains: A Sectoral Analysis" Iconic Research And Engineering Journals, 9(11) https://doi.org/10.64388/IREV9I11-1717747
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 8:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12