Discussion Topic 3
Discussion Topic 3: Real Business Case - How did BMW accord with barter amount risk?
Please acknowledge by June 2nd at 10:00 pm.
Euro had rapidly adequate and hit multi-year highs adjoin the dollar and the batter in the aboriginal division 2018. Late 2017, European Central Bank (ECB) had issued alarming admonishing that Euro is too able and could attempt EU abridgement aback into crisis. The dollar was almost anemic three years ago as able-bodied as during the aeon of 2007 and 2008.
The able euro has acquired problems for European businesses, such as BMW, and fabricated this car architect absent bisected a billion dollars in 2007 due to the abortive barter rate. Selling cars fabricated in Europe to US barter is no best profitable. So, BMW planned to aggrandize its assembly in the US.
Many adopted car makers are because alive added of their accomplishment to North America due to the contempo aggressive new tariffs from President Trump’s boxy access to trade. However, BMW’s South Carolina bulb exports added than two thirds of the 400,000 cartage it has produced annually, mostly to China, and China already imposed an added 25 percent allegation on cartage from the U.S.
Please analysis the afterward Video and articles, and acknowledgment the questions
Made in Germany – BMW in the U.S. (Duration: 5:21), by DW-TV Deutsche Welle
Made in Germany | BMW in the US -- Natural Hedging (Links to an alien site.)Links to an alien site.
Auto Makers Accede Alive Added Accomplishment to North America, by Chester Dawson and William Boston
(from The Wall Street Journal, Oct. 5, 2018)
The case study: How BMW dealt with barter amount risk, by Xu Bin and Liu Ying
Discuss whether this is a acceptable action for BMW to accord with barter amount risk. 1. What are the accessible arguments in favor of and adjoin the ambiguity action of BMW? 2. If you are a administrator or leader, what are another means for BMW to barrier the barter amount accident and to accord with the assessment issues? Your answers are bound to no added than fifteen sentences.
[Hint: You may additionally accede application assorted banking affairs and operational techniques.]
I additionally would like to allotment an absorbing video with all of you. BMW appear a video on May 22, 2019 to congratulate Mercedes-Benz CEO Dieter Zetsche on his retirement. On his aftermost day at work, Zetsche easily in his assignment brand at the advanced desk, says goodbye to colleagues in the lobby, afore actuality aerated aback home by a Mercedes-Benz S-Class sedan. After the car drops him off, Zetsche sneaks into the barn to aces up his well-hidden BMW i8 sports. The caption-- “Free at Last.” Here is the articulation to the video:Retirement is about exploring your advanced accessible future. (Links to an alien site.)Links to an alien site.Enjoy!
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