Oreign Exchange Hedging Strategies at General Motors
1.Explain and discuss each type of foreign exchange exposure (translation, transaction and economic/competitive) that General Motors face by providing data and information from the case study, and by referencing to the Study Guide and the text-book in defining the each type of foreign exchange exposure.
2.Explain and discuss the foreign exchange hedging strategies for each type of exposure (translation, transaction and economic/competitive) at General Motors.
3.Do you agree with General Motorsa foreign exchange hedging strategies? Why or why not? Your answer to the question should be supported by data and information from the case and required reading materials.
4. General Motors describe its hedging strategy as a?passivea. Is a?passivea hedging strategy compatible with shareholder value creation? Discuss the views for and against hedging foreign exchange exposure by using attached materials.
Added on 07.12.2014 06:22
In the essay please use some relative references from the following sources:
1) Madura, J. and Fox, R. (2011) International Financial Management, 2nd edition, South Western College Publishing Company, 2011
2) Materilas from the attached file.
3) Clark , E. (2002), International Finance, 2nd edition, Cengage Learning, EMEA, 2002