One profit-enhancing strategic approach a company can use to adjust to favorable and unfavorable exchange rate adjustments to its total production costs stemming from shipping footwear from production facilities in one geographic region to distribution warehouses in another region is to o greatly curtail--maybe even eliminate-shipments of branded and private-label footwear from production facilities to regions having an unfavorable/adverse exchange rate adjustment. adjust the company's shipping decisions and pricing and marketing efforts each decision round to sell more pairs in regions where the exchange rate adjustments are favorable and sell fewer pairs in regions where the cost adjustments are unfavorable; such shifts tend to boost profits in regions with favorable adjustments and lessen the adverse impact on profits in regions with unfavorable adjustments. e pursue a strategy of ignoring exchange rate cost adjustments that are either favorable or unfavorable--the sizes of the favorable and unfavorable exchange rate adjustments in each geographic region will cancel each out over the various decision rounds and thus have no net effect on the company over the long run. o always lower the prices of all footwear sold in a geographic region by the full amount of any adverse exchange rate adjustment per pair that the company incurs in that region; profits on the added sales volume normally offset the costs associated with the unfavorable exchange rate adjustment