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 & C

Question

Quizplus · Accepted Answer

Porsche relies on currency hedging to balance the relative value of the dollar compared to the euro, protect all earnings from foreign-exchange movements, and boost pretax profits on sales of its automobiles. This strategy allows Porsche to avoid increasing the prices of its automobiles and maintain its competitive position in the market while managing currency risks. Therefore, the correct answer is E, as all options A, B, and C are valid reasons for Porsche to use currency hedging.

Porsche Relies on Currency Hedging Rather Than Price Increases in Order