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International Finance

In order to cut costs when the dollar was at its peak, Caterpillar shifted production of small construction equipment overseas. By contrast, Caterpillar's main competitors in that area, Deere & Co. and J. I. Case, make most of their small construction equipment in the United States. What are the most likely competitive consequences of this restructuring?

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ANSWER. Caterpillar now has a diversified cost structure. This means it won't be hurt as much when the dollar rises again, but it also will not benefit as much when the dollar falls. Its main competitors, Deere & Co. and ...

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