Hyundai And Kia

Hyundai and Kia 1. Explain how the rise in the lever of the Korean bullion the won, against the dollar impacts upon the competitiveness of Hyundai and Kia exports to the fall in States? The rise in regard as of the Korean again the dollar leave behind cause the apostrophize of the import to increase. A strong won means that Hyundai and Kia vehicles sell in the United States for dollars argon record at a outseter value when translated back into the won. This will yen the pecuniary performance of both companies. One of the attractive features of the Hyundai cars was affordability. button up if Hyundais won continues to appreciate it may force them to desert their low cost strategy and start to raise prices. In post to counter this trend, Hyundai absolved automobile plants in the U.S. Hyundai relies on abroad shipments for around 75 percent of its sales. An article dated, phratry 21, 2011 declared that exporters in South Korea are delighted with w ons depreciation. An official at Hyundai Motor stated that the carmaker has modify its competitiveness by reducing cost burdens and expanding it labor sites into overseas rather than depending on the wons depreciation. 2. Hyundai and Kia are both expanding their presence in the United States.

How does this hedge against unbecoming bullion movements? What other reasons might these companies have for investing in the United States? What are the drawbacks of such a strategy? Hyundai and Kias precedential management made a good finding to open up manufacturing plants in the United States. Hyundai and Kia has set a terminal to increase their marke! t share and to protect themselves from unbecoming funds movement. They did so by sending a sustainable add to agitateher of their production to United States will help them precipitate the cash lost by the won increase in value against the U.S. dollar. Hyundai and Kia understand that the U.S. dollar is losing value versus the won, but the U.S. still has a strong economy and there are unlimited...If you need to get a full essay, order it on our website: OrderCustomPaper.com

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