What do you think of GM’s foreign exchange hedging policies?

Write down the questions and answer to submit.

1. Should multinational firms hedge foreign exchange rate risk and why? If not,
what are the consequences? If so, how should they decide which exposure to
hedge?

2. What do you think of GM’s foreign exchange hedging policies? Would you
advise any changes?

3. Should GM deviate from its policy in hedging its CAD exposure? Why or why
not.

4. Why is GM worried about the ARS eposure? What operational decisions could
it have made or now make to manage this exposure?

If all the answerrs can be answered from reading the case study, no other reference is needed. Need only enough pages to answer questions fully.

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