Foreign Exchange Hedging Strategies at General Motors Mihir A Desai Mark F Veblen
Porters Five Forces Analysis
The foreign exchange market is the market that permits countries and businesses to exchange their currency against each other. General Motors (GM) is an American multinational corporation that manufactures and distributes cars, trucks, and sport utility vehicles under the Chevrolet, Cadillac, and Buick brands. The main marketing strategy of GM is to diversify its business and reduce its exposure to a single market. To achieve this, GM entered into several strategic alliances with several firms to invest in different ge
Problem Statement of the Case Study
In the case of General Motors, a global automobile maker, the USD/RMB exchange rate was appreciating from USD 7.18/RMB 100 to 7.58/RMB 100 over the course of 2 years, due to the increasing demand for US cars in China, and consequently, to the decline in Chinese RMB. go to this website According to the Company’s management, this depreciation in the USD/RMB exchange rate affected General Motors significantly. According to the
Porters Model Analysis
Foreign Exchange (FX) hedging involves locking in the intended exposure to a foreign currency’s movement in a particular direction. FX hedging can be done for a few reasons. Firstly, it can be done as a preventive measure to avoid a foreign currency’s depreciation against the US dollar, in which the company may lose in value. Secondly, it can be done to protect against the fluctuations in a foreign currency’s value, in which the company may suffer a significant loss. Thirdly, it can be
Evaluation of Alternatives
In case, the Foreign Exchange risk (FXR) arises for General Motors, then the company needs to hedge it in foreign currency. Since, FX Risk is related to currency exposure, hedging can help avoid the losses. There are several hedging strategies available for FXR, but some of the most popular ones are: 1. Cross-currency Swap: This hedge involves borrowing US Dollars in FX currency (say USD) and selling foreign currency (say EUR, GBP, JPY
BCG Matrix Analysis
General Motors hedges its foreign currency exposure in two ways. The first hedge is achieved by purchasing forwards in the foreign currency it wants to buy at a fixed rate in the future. The second hedge is achieved by selling forwards in the foreign currency it wants to sell at a fixed rate in the future. For example, if General Motors wants to buy $1 million of euros in one month’s time at a fixed rate of $1.20, it would purchase a $1,000,000
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General Motors is one of the largest and most diversified automobile manufacturers, selling over 6 million vehicles in North America alone. It has a diverse product line of passenger cars, SUVs, trucks, and commercial vehicles. General Motors, with its global presence, enjoys a market share of more than 12% and continues to grow globally. While the world’s economic conditions have been tough, we can observe a steady improvement in our operating profits, our credit standing, and our share prices over the past two years
Case Study Analysis
Case: Foreign Exchange Hedging Strategies at General Motors Mihir A Desai Mark F Veblen I began my career at General Motors as an Analyst for Financial Services Department. I quickly advanced to Senior Analyst and then to Associate Vice President. During my years of work with this company, I have handled a variety of Foreign Exchange risk management cases. These cases involved hedging exposure to FX fluctuations in different currencies. These currencies included USD, EUR, GBP, CHF, JPY,