Assignment 4: Analyze Managing Foreign Currency Exposure at 3M Case Study Instructions Read the Chapter 10 Closing Case: Managing Foreign Currency Exposure at 3M (pp. 334) and answer the questions below.

Assignment 4: Analyze Managing Foreign Currency Exposure at 3M Case Study

Instructions

Read the Chapter 10 Closing Case: Managing Foreign Currency Exposure at 3M (pp. 334) and answer the questions below.

Write a minimum of 1-to 2-pages (double-spaced), not recapping the case history or repeating the material in the case. Make sure to address the following in your case study analysis:

• If the dollar appreciates in value against most other countries over the next year, what will the impact of this be on 3M?

• If the dollar depreciates in value against most other countries over the next year, what will the impact be on 3M?

• Should 3M hedge against adverse movements on foreign exchange rates? How should it do this?

• Should it hedge all of its foreign exchange transactions, or just a subset?