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One appealing strategy that company managers can use to deal with the favorable and unfavorable exchange rate adjustments to manufacturing costs that occur each year
One appealing strategy that company managers can use to deal with the favorable and unfavorable exchange rate adjustments to manufacturing costs that occur each year when footwear from a plant in one region is shipped to a distribution warehouse in another geographic region is to not bother taking any action and simply ignore exchange rate cost adjustments altogether the sizes of the favorable and unfavorable exchange rate adjustments in each geographic region are virtually certain to cancel each out over the various decision rounds and thus have no net long-run effect on the company. lower the prices of all footwear sold in a geographic region by the full amount of any unfavorable/adverse exchange rate adjustment per pair that the company incurs in that region and raise the prices of all footwear sold in a geographic region by the full amount of any favorable exchange rate adjustment per pair that the company incurs in that region such pricing adjustments act to maximize th
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