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Sustaining Exports with a Stronger Dollar

Deere & Company exports tractors to Spain, but the strong dollar against the Euro hurts sales of Deere Tractors in in the Spanish market. Likewise, Deere faces competition from German and Italian tractor makers, such as Fendt and Claas, whose operating currencies are the Euro. What kind of measures would you recommend so that Deere can sustaint its market share in Spain?

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Deere & Company can take different types of measures to maintain its market share in Spain. The first measure is that Deere & Company should open a tractor manufacturing plant in Spain. This will obviate the need to export ...

Solution Summary

The answer to this problem explains the effect of a Stronger Dollar. The references related to the answer are also included.