International Manufacturers Pricing Model Under The Floating Exchange Rate And Exchange Rate Behavior Research

With the trend of openness and integration of globlal economy,exchange rate is playing more and more important role in influencing the allocation of global resources.The sensitivity of the price of tradale goods to exchange rate fluctuation becomes the focus of international economics because it is a critical vector and transmitter when an economy is confronted of exogenous impact .Traditional international economics theory assume that nominal exchange rate fluctuation has complete pass-through effect, namely it's change will introduce proportional change of tradable goods ,then it will influence such macroeconomic vector as term of trade ,import and export ,inflation ,employment ,productivity ,income allocation ,and so on. From a microeconomic angle, including pricing to market, innovative behavior,menu cost and sunk cost,the paper probe into the pricing model of international enterprices under floating exchange rate and testify the incomplete pass-through of exchange rate and it's detailed reason,then discuss the inspiration it has on China.It's believable this kind of research will play a big part in China's exchange rate scheme and some macroeconomic problems such as exchange rate tranmitting channel and effects ,exchange rate fluctuating behavior.In addition, on the base of the assumption of exchange rate incomplete pass-through, this paper expand the exchange rate overshooting model of Dornbush (1976) and innovate the theory of price stickiness of new Keynes economics, then analyze the exchange rate behavior in short term under the assumption of incomplete pass-through, beliving that the insensitiveness of the price of tradable goods strengthen the fluctuation of exchange rate behavior.The paper incorporate closely the exchange rate pass-through and it's behavior in short term .Incomplete exchange rate pass-through is an important assumption of exchange rate overshooting and exchange rate overshooting is the background of our disscuss on the degree of exchange rate pass-through .The paper has following conclusion:1. The main determination of the degree of exchange rate pass-through: the exchange rate elasticity of marginal cost, the sensitivity of mark-up ratio to exporting price, pricing game between the competitior ,enterprice innovation and it's efficiecy ,mecu cost ,sunk cost.2.There are distinct differences of degree of exchange rate pass-through among industries.3.The elasticity coefficient of exchange rate pass-through in short term is less than that in...