What else can volkswagen do to reduce its exposure

Assignment Help Project Management

Reference no: EM131374137

Reread the Management Focus on Volkswagen, then answer the following questions:

a. Why do you think management at Volkswagen decided to hedge only 30 percent of the automaker's foreign currency exposure in 2003? What would have happened if it had hedged 70 percent of exposure?

b. Why do you think the value of the U.S. dollar declined against that of the euro in 2003?

c. Apart from hedging through the foreign exchange market, what else can Volkswagen do to reduce its exposure to future declines in the value of the U.S. dollar against the euro?

Reference no: EM131374137

Questions Cloud

Explain the logic of your answer : The current spot exchange rate for Korean won is $1 = Wl,200. Forecast the spot exchange rate one year from today. Explain the logic of your answer.

Write a brief description of the organization : Write a brief description of the organization, what it does, which sector it represents, and why you would want to work for it. This is fantasy, so you can dream big here

What components on an oil furnace should be changed annually : How should the output of an oil furnace ignition transformer be tested?

What should the one year forward dollar exchange rate : Suppose the price of beef is expected to rise to $3.10 in the United States and to £4.65 in Britain. What should the one-year forward dollar/pound exchange rate be?

What else can volkswagen do to reduce its exposure : Why do you think management at Volkswagen decided to hedge only 30 percent of the automaker's foreign currency exposure in 2003? What would have happened if it had hedged 70 percent of exposure?

Why does excess combustion air reduce combustion efficiency : Why do we not try to adjust the CO 2 percentage to the perfect stoichiometric percentage?

What should you do in the given scenario : You expect the yen to rise from its present rate of $1 = ¥130 to $1 = ¥100 by December. You can borrow yen at 6 percent a year. What should you do?

What smoke spot number represents correct combustion : Discuss the relationship between the over-fire draft and the stack draft.

What was the nature and significance of this debt : You are at a cocktail party of math teachers trying to impress your professors. Responses should be 300-500 words and include a citations. What was the nature and significance of this debt? What were some of the conditions that made it possible

User Account

All Pages