Porsche Relies on Currency Hedging Rather Than Price Increases in Order

question 48

Multiple Choice

Porsche relies on currency hedging rather than price increases in order to:

• A)boost pretax profits on sales of its automobiles.
• B)balance the relative value of the dollar compared to the euro.
• C)protect all earnings from foreign-exchange movements.
• D)generate about 45% of its sales in the United States.
• E)A, B, and C

---

Definitions:

Planning Horizon

describes the time period over which future events are considered for planning and decision-making purposes.

Aggregate Planning

A process in operations management aimed at determining optimal production levels, inventory levels, and workforce levels to meet fluctuating demand over a medium-term horizon.

Variables

Elements, features, or factors that are likely to vary or change and can be measured in an experiment or model.

Services Inventory

The concept of quantifying and managing the availability of intangible service capacities, such as hours of labor or access to resources.