Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025)

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Research on the Impact of Exchange Rate Fluctuation on International Trade

Authors
Zisheng Ou1, *
1Shenzhen Technology University, Shenzhen, 518118, China
*Corresponding author. Email: 202300701057@stumail.sztu.edu.cn
Corresponding Author
Zisheng Ou
Available Online 26 June 2025.
DOI
10.2991/978-94-6463-770-0_76How to use a DOI?
Keywords
Exchange Rate Fluctuations; Price Competitiveness; Trade Volume; Trade Structure; Transnational Investment
Abstract

This research paper conducts a systematic analysis of exchange rate fluctuations on international trade by exploring the influence on price competitiveness along with trade volume performance and trade structure adjustments and cross-border investment flows. Exchange rates directly affect companies’ short-term commercial performance and drive long-term economic progress according to the research. Exchange rate depreciation enhances export competitiveness through lower prices but currency appreciation increases import costs to domestic industries which obtain their inputs from abroad. The paper explains the relationship between exchange rates and trade volumes through the concepts of the Marshall-Lerner condition and trade balance elasticity theory. Differing exchange rates operate as a crucial necessary element that shapes both resource allocation and industrial shaping processes for developing nations. This paper ends with suggestions for financial hedging systems and supply chain expansion as resilience measures against currency exchange rate variation impacts. The proposed research outlines multiple strategies to measure exchange rate policies across different industries and countries during their search for optimal policy outcomes.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
26 June 2025
ISBN
978-94-6463-770-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-770-0_76How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zisheng Ou
PY  - 2025
DA  - 2025/06/26
TI  - Research on the Impact of Exchange Rate Fluctuation on International Trade
BT  - Proceedings of the 2025 3rd International Conference on Digital Economy and Management Science (CDEMS 2025)
PB  - Atlantis Press
SP  - 673
EP  - 686
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-770-0_76
DO  - 10.2991/978-94-6463-770-0_76
ID  - Ou2025
ER  -