In this article, the authors explore the antecedents of currency choice in export transactions by U.S., Swedish, and Finnish firms. Using a framework adapted from exporting literature and negotiation theory, the authors examine relationships between the transaction currency and three sets of constructs, predicated in negotiation and bargaining literature, as well as performance measures. Results indicate a strong relationship between currency choice and process-related and firm characteristic measures. However, situational constraint factors do not exert much influence on transaction currency. The logistic regression model confirms these results with 83% correct classification. The authors demonstrate that the use of foreign currencies is related positively to export volume and transaction value but inversely affects export profit margin.
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