BUS IP2 Unit 5 Essay Example | Topics and Well Written Essays - 1500 words

BUS IP2 Unit 5 - Essay Example The company has diverse operations, which are undertaken in the global market and have been found to influence operations and contribution to the firm’s profit. The company also implements diverse hedges against risks associated with exchange rates. However, there are effects of increase and decrease in the dollar’s exchange value on the firm’s profitability. The company has also established schemes to reduce the effect of the dollar exchange to the business operations. General Motors Company Introduction There are various multinational companies in the United States (U.S) that have been found to focus on diverse fields of operations. These companies have been analyzed and found to influence process involved in growth and development in diverse nations positively. This has also been found to create a conducive environment for improvement of individual’s living standards among individuals from diverse communities in the nation. Therefore, strategies have be en implemented to enhance operations undertaken by the Multi-National Enterprises in U.S. General Motors is one among the MNE’s in U.S dealing with automotive. ... However, it has been noted that the American dollar has been weakening over the years, and individuals from other nations have travelled to the U.S as foreign currency is also appreciating. Currency denominations have been found to vary, and this influences export and import price rates in different nations. Therefore, the company managers have established a method that enables other companies from diverse nations to access various goods and services produced by the company (Sinha & Sinha, 2009). This has been attained by evaluating the exchange rates between the U.S company price rates and the partnering nation. The company lowers the price rates of its revenues and costs to nations that have been considered as developing. Also, they should have a greater range of currency difference with the American dollar. This has helped influence development of diverse nations, despite the fact that, the nation is considered to be developing. Nations that are equal and exchange their currency a t fairly same price with the Americans have goods and services offered to them at relative same prices as the export price in the U.S. This has helped the company manage its prices, and reduce cases of loss being experienced in the organization (Feldstein, Hines & Hubbard, 2007). Therefore, the GM Company managers have used schemes that have been considered effective and efficient in ensuring individuals from diverse nations gain access to various spare parts and vehicles at prices that are considerably low and affordable based on their denominational currency. Operations undertaken by MNE's with multiple foreign operations include engaging in productions that