BUSN 427 Final Exam (Devry)

has actually helped boost Caterpillar’s bottom line.In the 1980s, a stronger dollar hurt Caterpillar’s competitive position,but in 2008 a stronger dollar did not seem to have the same effect.What had changed?(TCO 7) After joining the European Union in 2004, Latvia establisheda currency board system that pegged the value of its currency to theeuro. This system came under significant pressure when the effects ofthe financial crisis that began in the United States in 2008 spilled overinto the country. Latvia was eventually forced to ask the InternationalMonetary Fund and the European Union for assistance in order to getits financial system and economy back on track. As part of theassistance package, Latvia was required to make significant changesin its economic policy.Why did the initial effort by Latvia’s government to stabilize thecountry’s currency fail? Was the government attempting to stop abanking crisis or a foreign debt crisis?(TCO 8) Vellus Products is a small company that produces personalcare products for dogs. Vellus Products initially began exportingwhen a Taiwanese business placed an order for its dog shampoo.Since then, Vellus Products has expanded its export business andtoday, international sales account for about half its total sales. VellusProducts now sells in 28 countries around the world.Can other small companies learn from the experiences of VellusProducts? Reflect on the tips of Vellus Products’ founder SharonDoherty for beginning the export process.(TCO 8) By 2012, India is expected to export half a million vehicles ayear. South Korea’s Hyundai is leading the charge, exporting overone third of its Indian production. Suzuki and Nissan have both