Purchase Solution

Sustaining Exports with a Stronger Dollar

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

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

Solution Preview

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 provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Introduction to Finance

This quiz test introductory finance topics.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • International Finance

    As a supplier to industrial customers who compete against imports and that sell overseas, Cooper Industries benefits from a weaker dollar and is hurt by a stronger dollar.

  • exchange rate

    The first impact is on net exports, that is exports - imports, which is a component of the GDP. Consider for example the case of the Dollar and the Euro. Take two hypothetical numbers.

  • Strong U.S. dollar good or bad?

    However, from the point of view of US exporters, a weaker dollar is favorable because it will boost their exports and bring in more currency to them. Read this article for more insight: http://www.laborresearch.org/story.php?

  • Value of Yen and Impact on Imports, Exports

    When the yen is stronger, compared to the American dollar, for instance, a strong economy is indicated.

  • monetary policy

    When there is an adverse balance of payments, the Federal Reserve devaluates the dollar so that exports from the US grow and imports decline.

  • Trade deficit and interest rates

    An increase in interest rates in the rest of the world will lead to a stronger dollar a. False. A trade deficit occurs when imports are higher than exports. That is, a negative balance of trade.

  • International financial management multiple choice questions

    This firm would _______ a stronger dollar and would _______ a weaker dollar.

  • Trade

    Currently, the US dollar (USD) is slightly stronger than the Canadian dollar (CAD). The current exchange rate is $1.0039 USD vs. $1.000 CAD (the exchange rate data was found at the following website: www.bankofcanada.ca/rates/exchange).

  • Bretton Woods and Collapse

    The cheaper currency makes a nation's exports cheaper in terms of other nations' stronger currencies. You can see the dire situation in Europe where countries like Greece, Spain, Italy, etc. are all using the 'fixed exchange rate' of the Euro.

View More Related Solutions