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uct substitution. 30 MANAGING OPERATING EXPOSURE 3. Following HC depreciation, local firm may have much more freedom in its pricing. C. Promotional Strategy 31 MANAGING OPERATING EXPOSURE D. Product Strategy exchange rate changes may alter 1. The timing of new product introductions, 2. Product deletion , 3. Product innovation. 32 MANAGING OPERATING EXPOSURE III. Product Management Adjustments product sourcing and plant location are the principal variables to manipulate. A. Input mix B. Shift production among plants C. Plant location D. Raising productivity 33 MANAGING OPERATING EXPOSURE IV. Planning For ExchangeRate Changes A. With better planning and more petitive options, firms can change strategies substantially B. before the impact of an currency change makes itself felt. C. Implication: paction of adjustment period following an exchangerate change. 34 MANAGING OPERATING EXPOSURE V. Financial Management of Exchange Rate Risk: Financial manager’s Role in Marketing and Production A. Provide local manager with fore casts of inflation and exchange rate changes. B. Identify and focus on petitive exposure. 35 MANAGING OPERATING EXPOSURE C. Design the evaluation criteria so that operating managers neither rewarded or penalized for unexpected exchangerate changes. D. Estimate and hedge the operating exposure after adjustments made. 36 演講完畢,謝謝觀看! 。 the sources of the firm’s inputs。Multinational Financial Management Alan Shapiro 7th Edition Sons