1Explain how a rising American dollar will affect a an Ameri

1)Explain how a \"rising\" American dollar will affect

(a) an American company which imports cashews; and

(b) an American company which exports apples.

True/False

2. Since the “meltdown” of 2008, many large companies (such as IBM) have issued more debt (corporate bonds) and used the proceeds for research and development to develop new products/product lines -

3. “Maytag” and “Schlitz” are companies which demonstrate that “brand loyalty” are more important than “retaining quality” (of the product) in retaining present and future customer sales -    

4. A good argument can be made that the demise of once-giant retailers such as Sears and K-Mart was a result of poor strategy formulation -

5. Effective strategy evaluation is unrelated to the use of accurate metrics -

Solution

1. Rising American dollar would have different impact on the American companies that import or export goods or services.

(a) An American company which imports cashews can import them at lower price. Thus, the company’s profits would increase.

(b) An American company which exports apples- Rising American dollar would make the exported apple more expensive to foreign buyers. It will result in loss sales for the company.