Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures, Spanish Version Harvard Case Solution & Analysis

Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures, Spanish Version Case Solution

This note discusses the hedging policies, effect of accounting rules and the risk management structure of the company, GM.It has to also take into account the distraction from the policies as prescribed although the general corporate hedging policy provides a consistent way of the foreign exchange risks that General Motors must handle.

Describes two such situations: a critical exposure to the Canadian dollar with adverse accounting consequences and the exposure to the Argentinean money of GM when devaluation is widely expected. Pupils must appraise the risks General Motors faces in each scenario and contemplate which hedging strategy--if any--might not be inappropriate. Furthermore, asks students to examine accounting treatment and the financial prices of alternative derivative transactions for hedging purposes. A rewritten version of an earlier instance.

PUBLICATION DATE: March 08, 2005 PRODUCT #: 208S06-PDF-SPA

This is just an excerpt. This case is about FINANCE & ACCOUNTING

Related Case Solutions & Analyses:

Student Educational Loan Fund Inc. Flash Memory Inc. SONAECOM TAKEOVER OF PORTUGAL TELECOM (C) Royal Barbados Bank (A) Scottish Courage Limited (A): John Dunsmore’s First Week Sms For Life (A): A Public-Private Collaboration To Prevent Stock-Outs Of Life Saving Malaria Drugs In Africa Stelton (A): Buyout Opportunity? Tata Nano: Dilemmas In Sustainable Development TerraCycle (D): Where’s The Capital In Eco-Capitalism Lernout & Hauspie Speech Products, NV: Financing from Start-up through IPO