Student’s name: Nguyen Thi Ngoc Ha Student’s ID: EMBA19033 Class: EMBA19B COURSE: INTERNATIONAL BUSINESS INDIVIDUAL WRITTEN ASSIGNMENT “Strong Dollar Forces Factories to Lose Flab,” January 26, 2015 The rising dollar is putting U.S manufacturers through the equivalent of a new year’s fitness regime, causing pain for now but also promising long-term gains in efficiency For this reason, imports are cheaper for U.S while their products out there are costly Moreover, that is making U.S.-made products pricier in other countries This is a combination that is likely to expand the already gaping U.S trade deficit A dollar that is increasing in value causes manufacturers to increase production to get products that are of lower production costs but are of high value A family-owned company known as Oberg that makes metal parts The company has employed 750 employees and they make approximately $130 million of sales annually Oberg is moving out of some markets where competition is based mainly on price It sold its company based in Mexico that sold doorknobs to stay away from competition with Asians Oberg is putting more focus on highly regulated markets, such as parts for medical devices and aircraft It also has invested in new computer controlled cutting machines that are easier to program and run One operator can handle four of these machines Terex is making more steel parts for some of its machines in China, where steel and labor are cheaper This company might shift some production of equipment to Europe where the weaker Euro has reduced cost in dollar term The rising dollar already has forced U.S poultry companies to accept lower prices for dark chicken meat, popular in overseas markets Prime Equipment Group Inc - maker of poultry-processing Equipment- is using more Brazilian parts and materials for the products it sells in that country to help offset the effects of a weak real The company also is delaying repatriation of profits from Brazil in the hope the real will regain value Ford Motor Company have had plants around the world, reducing their exposure to any one currency Some smaller manufacturers are trying to emulate that global approach Firstronic LLC, a Grand Rapids, Mich., maker of Printed circuit boards used in cars and other products, serves its customers in North America mainly with production from its Plants in Michigan and Mexico Ground Force Worldwide, a Post Falls, Idaho, maker of trucks used in mining assemble portions of its trucks overseas to reduce costs FirmGreen Inc., has had to cut their staff to 10 people from 17 FirmGreen relies on other U.S.-based companies to manufacture its equipment Woodward Inc., a maker of parts for aircraft and various types of engine, it includes clauses that adjust the price of a large order depending on currency movements, so that the two sides share the risk 2 “Currency Declines Lose Export Punch,” June 13, 2017 A weak currency refers to a nation's money that has seen its value decrease in comparison to other currencies Weak currencies are often thought to be those of nations with poor economic fundamentals or systems of governance A less-valuable currency makes the country's export goods less expensive than their competitors in foreign markets, thus being more competitive, companies can have benefits from exporting However, a weaker currency also means that import materials to make goods are more expensive It makes companies be difficult to find the international suppliers Falling currencies also impacted international politics Particularly, Japan and China's low currencies led to a strong dollar, obstructing US exports It is important for companies to go ahead and understand the impact of currency fluctuations and understand where and how currency risk exists in a business Understanding how currency fluctuations affect a business in different sectors can help plan to offset any risk and assist in effective management of that risk Indeed, currency fluctuations can affect an organization's bottom line, but such fluctuations are only part of the puzzle and must be put into proper perspective when making decisions While it is likely that currency volatility will continue to be a component of decisions in the future, possibly even being a more important factor now, natural disasters and geopolitical issues affect The viability of global relationships must also contribute to any supply chain sourcing decisions The new idea is that much of the benefit from the depreciating currency is offset by higher prices for imported components Due to higher import costs, domestic suppliers have a better chance to enter the market; however, this can take time It can be seen that weak currency can lead to be negative or positive Companies should focus more on shifting to local suppliers and manufacturers “Taxify Overtakes Uber in Africa,” Sep 17, 2018 Uber Technologies Inc is following a much smaller competitor Taxify OU has grown in just years from a small venture in Estonia to a so-called technology unicorn which focus on Europe and Africa Markus Villig says it has 2.4 million active users in six African countries Uber also does well in those markets, raking in 1.3 million active users or those who have started riding in the past month Mr Villig said Taxify has reached a $1 billion valuation after raising $175 million from investors and plans to spend "hundreds of millions" of dollars growing on the continent over the next few days next year He also said in an interview that demand in Africa for ride-hailing service is much greater than in developed countries and Europe because of the lack of public transport and low percentage of car ownership and because of high unemployment, people looking for easy and flexible ways to make money However, Uber declined to provide specific figures for investment plans in Africa On the other hand, Taxify got into Uganda before Uber, but it's back with a ride-hailing service Uber had to wait almost two years in Uganda with its UberX ride-hailing service before recommending the wedding hail Uber wants to make a difference in Uganda by rolling out more security features Taxify deducts 15% of the driver's fare, while Uber deducts 25% This is a significant increase in a country like Uganda, where gross domestic product per capita was just $604 last year Taxify powers automated payment drivers, an invention popular in emerging markets that allows consumers to receive and save money instantly via mobile phone Ultimately, Uber's vulnerability to smaller, nimbler competitors in some of the world's fastest-growing economies is represented by exponential growth rates In March, Uber announced that it would sell its Southeast Asian operations to Snatch Inc In exchange for lower participation, Grab Inc “Toyota Profits Soars on Weak Yen”, August 3, 2013 Toyota's profits nearly doubled from the first fiscal quarter of the previous year A weaker currency, which makes Japanese goods cheaper abroad and increases the value of earnings abroad, is responsible for Toyota's quarterly profit share and improved earnings outlook It raised its fiscal year earnings target by 8% to 1.48 billion yen Toyota kept its currency valuation unchanged at 90 yen to the dollar for the rest of the fiscal year, much lower than the roughly 100 yen to the dollar that has persisted for most of its first quarter Factoring in first-quarter rates, it expects fullyear interest rates to average 92¥ for the dollar The company's executives emphasized the strong operating results were not only due to a more favorable yen conversion rate About 11% of the company's quarterly operating profit came from the benefits of cost-cutting, innovation, and production changes Revenue rose 14% to 6,255 trillion yen in the quarter, from 5,502 trillion yen a year earlier Toyota is increasingly outpacing its domestic rivals, Nissan Motor and Honda Motor after the recent crises Toyota's cost-cutting drive, coupled with the sudden reversal in the yen, has become a driving force for Japanese-built exports Toyota's solid performance can partly be attributed to brisk sales in the US, which rose 4% to 689,000 units in the April-June period Toyota and its domestic peers have lagged lags behind the broader market as U.S automakers receive a significant boost from the surging pickup truck market But soon after, Toyota announced a 17% year-over-year increase, surpassing Ford Motor Co To become the number auto seller in the country after General Motors Co Toyota said its auto sales in China fell 3.5% after two months of growth, but it raised its operating profit forecast to 194 trillion yen from 18 trillion yen and Revenue expectations are now 24 trillion yen, up from 23.5 trillion yen ... Due to higher import costs, domestic suppliers have a better chance to enter the market; however, this can take time It can be seen that weak currency can lead to be negative or positive Companies... rolling out more security features Taxify deducts 15% of the driver's fare, while Uber deducts 25% This is a significant increase in a country like Uganda, where gross domestic product per capita