Foreign Exchange Hedging Strategies at General Motors: Competitive Exposures, Spanish Version Harvard Case Solution & Analysis

Foreign Exchange Hedging Strategies at General Motors: Competitive Exposures, Spanish Version Case Solution

The question arises as to how a multinational firm comprehendand manage currency risks that arise from competitive exposures. General Motors has a substantial competitive exposure to the Japanese yen. Although the hazards GM faces from the depreciating yen are widely admitted, the firm's corporate hedging policy does not provide any guidelines on handling such exposures that are competitive.

Eric Feldstein, treasurer and vice-president of finance, must quantify GM's yen exposure and advocate a means for GM to handle the risks that arise from its competitive vulnerability. Students must assess the impact of a yen depreciation on GM sales and gains. A rewritten version of an earlier case.

PUBLICATION DATE: March 09, 2005 PRODUCT #: 207S15-HCB-SPA

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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