Motives for choosing a currency in international business

by Björn; Kullberg Isacsson

Institution: Kristianstad University
Year: 0
Keywords: Social Sciences; Law; Samhällsvetenskap; Juridik; LAW/JURISPRUDENCE; RÄTTSVETENSKAP/JURIDIK; Degree of Bachelor of Science in Business and Economics; Ekonomprogrammet; samhälle/juridik; Social and Behavioural Science, Law
Record ID: 1349682
Full text PDF: http://urn.kb.se/resolve?urn=urn:nbn:se:hkr:diva-3010


In September 2003 Sweden had an election whether or not to have the euro. Sweden chose to stand outside the co-operation of the European Monetary Union, despite having joined the European Union several years before. We thought that this aspect made it interesting for us to examine what motives Swedish exporting companies have in their choice of currency. The group developed theories and factors of potential impacts on companies’ choice of currency. The model was named the L.I.K-model, which is short for Lasson, Isacsson and Kullberg, the surname of each group member. The model was tested on twenty companies through telephone interviews. The theories and factors were divided into internal and external factors. Overall the internal factors as the company loans, transaction cost, matching and policy has had the largest impact on the companies. The external factors as the political condition, industry and introduction of the euro have also had a large impact in their choice of currency. All theories and factors had an impact on some of the companies and we also concluded that there were no major factors left out in our model.