This study analyzes the characteristics of markup adjustments on major Korean export products during the Korean foreign currency crisis. Test results show that the markup adjustment differs by product rather than by export destination. Moreover, this ...
This study analyzes the characteristics of markup adjustments on major Korean export products during the Korean foreign currency crisis. Test results show that the markup adjustment differs by product rather than by export destination. Moreover, this study reports a relationship between markup adjustment and export market diversification. Firms that diversify their export market have a tendency to increase their markup when the Won(₩) value decreases. This study shows empirically that the degree of export market diversification is one of the related factors in export pricing policy when the exchange rate changes.