Business

Product Strategy.

Product Strategy. Companies often respond to exchange risk by altering their product strategy, which deals with areas such as new-product introduction, product line decisions, and product innovation. One way to cope with exchange rate fluctuations is to change the timing of the introduction of new products. For example, because of the competitive price advantage, the […]

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Does locking in Markel’s dollar costs of raw materials through multiyear dollar contracts automatically reduce the company’s currency exposure?

Questions 1. Why does a rise in the dollar hurt Markel? How does a falling dollar help Markel? 2. What does Markel do to hedge its currency risk? Can Markel use hedging to completely eliminate its currency risk? 3. Comment on Markel’s policy of selective hedging. Are there any speculative elements involved in such a

Does locking in Markel’s dollar costs of raw materials through multiyear dollar contracts automatically reduce the company’s currency exposure? Read More »

Would you recommend Markel continue to follow a policy of selective hedging?

Questions 1. Why does a rise in the dollar hurt Markel? How does a falling dollar help Markel? 2. What does Markel do to hedge its currency risk? Can Markel use hedging to completely eliminate its currency risk? 3. Comment on Markel’s policy of selective hedging. Are there any speculative elements involved in such a

Would you recommend Markel continue to follow a policy of selective hedging? Read More »