Description
This week's discussion pulls from the information in the BSG eTextbook Chapter #7 ("Strategies for Competing Internationally and Globally") as well as several videos on currency exchange rates and tariffs in the Readings and Resources Folder.
Companies can decide to either ignore the impact of exchange rate changes and tariffs, or attempt to adapt their strategies and decisions to try to capitalize on favorable exchange rate changes and tariffs and minimize the adverse impact of unfavorable exchange rate changes and tariffs.
Note: Please make sure that you do not reveal any of your team's "competitive strategies" in your postings above, and instead, just discuss within the scope of the overall Footwear industry. NOTE. PLEASE ANSWER THE QUESTIONS SPECIFIED ABOVE. ALSO, PLEASE TO BSG SIMULATION. | 0 | 0 | 0 |
Explanation & Answer
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Running Head: STRATEGIES FOR COMPETING INTERNATIONALLY
Strategies for Competing Internationally
Student’s Name
Institution of Affiliation
Course
Date
1
STRATEGIES FOR COMPETING INTERNATIONALLY
Advantages and disadvantages of a firm taking a "passive" approach to exchange rates in
the footwear industry
The first advantage is that taking a passive approach to exchange rates creates several
alternatives for investors as it simultaneously reduces the vulnerability of a firm from key
exchange rates that would significantly affect the profit margins (Czarnitzki & Wastyn, 2012).
The second benefit is associated with creating high net worth investors through tax efficiency.
On the other hand, the key disadvantage is that this approach is difficult for use by small
investors since it is dictated by an underlying index and the footwear industry has to be contented
with the performance of the index. Secondly, this approach does not permit p...