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SMS Elotherm could’nt rise its prices to cover its costs, because of market pressures which impose low price : in this case, it would have been not any more competitive
• Keiper (contract signed in 2001) manufactured in London and Ontario to supply in US. At this time, 1?=1$. When the euro had then appreciated against the dollar, this company had a real hedge against the rising of the euro value, but, even if being based in Canada has been good because close to US, the US dollar has also depreciated against the Canadian dollar and secondly, Keiper was still importing from Germany and ? has also depreciated against the Canadian dollar which had lead to rise the costs of the Canadian plant
2-Analysis of the companies’ problems
2-1-context : the foreign market risk (currency rates)
• What is the exchange rate between the U...
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