Jet engine manufacturing entails enormous economies of scale.Pratt & Whitney,a large U.S.jet engine producer,faces substantial competition from Rolls-Royce,the British engine manufacturer.What would be the BEST way for P & W to cope with a dollar that has recently appreciated by 50%?
A) accelerate R&D spending and cost?cutting efforts
B) shift some of its production abroad
C) raise the foreign currency prices of its engines sold abroad
D) buy dollars forward
Correct Answer:
Verified
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