The Foreign Exchange Market

QUESTION 1: You are the CFO of a U.S. firm whose wholly-owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take?

 

 

Sample Solution

Designers. Through years we have been offering solutions to problems of any matter. Connecting the audience or in other words customers with the needs of our own client. After watching an advert of a global technological company, I started wondering why is the product of this specific brand more desirable to me than a similar product from another technology company. Naively, I used to think you only need a good idea for it to make it work for the audience, however the answer to this question is far more complex. Behind weeks and months of planning, thousands of binned ideas and endless factors there is one thing that increases the value of a certain product, service or a brand. Design strategy. With no proper definition for this term, it is what differentiates between achieving the short term and long term goals of a client.

Strategy helps the designers and clients to achieve the advantage at the competition and distinct their qualities. When thinking of an effective design strategy we need to understand the accomplishment of a business strategy. The distinction between business and design strategy is the execution. Designers execute what the business wants to achieve in the future and helps to overcome already existing problems or the ones client might meet in the future. Communication is the key in life and so it is in design. As designers we are communicating the meaning of the product or brand so the customer understands the value of it. Design strategy works as a business tool. A good example is given by Terry Lee Stone (2010, p.84), if a problem of a client and business is limited product distribution, one idea of a design strategy to respond to this problem would be setting up or remaking the e-store or a website in a way it could be more appealing for the customers to buy directly.

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