Posted: July 10th, 2013
Foreign Exchange, Int’l Monetary, and Global Capital Markets
case for Chapter 10 (9th edition of the textbook) on it – Caterpillar Case.
1. In the 1980s a
stronger dollar hurt Caterpillar’s competitive position, but in 2008 a stronger dollar did not seem to have the same effect. What had changed?
2. How did
Caterpillar use a strategy as a "real hedge" to reduce its exposure to foreign risk? What is the downside of its approach?