Title: The impact of exchange rate volatility on the industry-level geographic diversification of global supply chain network

Authors: Jian-yu Fisher Ke; Tayyeb Shabbir; Jasmin Corona

Addresses: Department of Information Systems and Operations Management, California State University Dominguez Hills, 1000 E Victoria Street, Carson, CA 90747, USA ' Department of Accounting, Finance and Economics, California State University Dominguez Hills, 1000 E Victoria Street, Carson, CA 90747, USA ' Finance Department, Henry Company LLC, 999 S Sepulveda Blvd., El Segundo, CA 90245, USA

Abstract: This study examines the net impact of exchange rate volatility on the industry-level geographic diversification of global supply chain network through trade data. The findings show that exchange rate volatility has an inverse yet nonlinear relationship regarding the choices of export destinations and import origins at the level of industries. This study suggests that firms consider potential exchange rate volatility in the design of supply chain network and develop resilient portfolios of customers and suppliers. The policy implications are discussed.

Keywords: exchange rate risk; global supply chain; global financial crisis.

DOI: 10.1504/IJLEG.2018.097484

International Journal of Logistics Economics and Globalisation, 2018 Vol.7 No.4, pp.366 - 387

Received: 09 Apr 2018
Accepted: 11 Nov 2018

Published online: 18 Jan 2019 *

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