Exchange rate and optimal trade policy

• Main Authors: Yu-Shian Chou, 周雨賢
• Other Authors: Jiunn-Rong Chiou
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/6ef35w

碩士 === 東吳大學 === 國際經營與貿易學系 === 96 === The purpose of this dissertation is to explore how the trade countries’ governments modify their optimal trade policies when the fluctuation of exchange rates is taken into account. Two representative models in the “strategic trade theory” were selected to be analyzed. First one is the export model in which two firms from different countries, export to the third country and engage in Cournot quantity competition. Another is an import model in which a foreign firm exports to domestic country and engages in Cournot quantity competition with a domestic firm. The main findings of this dissertation are as follows. In the export model, home government should raise the optimal export subsidy and the foreign government would decrease its optimal export subsidy when home currency devaluate solely. Home currency devaluate solely will raise the real subsidy for the third country’s consumers. The two export countries’ optimal subsidy will rise if the third country’s currency was unilateral revaluation; but reduce the real export subsidy for consumers of the third country. In the import model, the optimal tariffs of home government are the same no matter whether if there exists a competitive domestic firm. A revaluation of home currency raises the optimal import tariff, causes more imports, and makes home consumers better　off.