International Business 13th Edition by Donald Ball,Michael Geringer,Michael Minor ,Jeanne McNett

Exercise 1

Suppose that competitor analysis reveals that the American subsidiary of your firm's German competitor is about to broaden its product mix in the American market by introducing a new line against which your company has not previously had to compete in the home market. The environmental analysis shows that recent weakness in the dollar-euro exchange rate is expected to continue, making American exports relatively less expensive in Germany. Do you recommend a defensive strategy, or do you attack your competitor in its home market? How will you implement your strategy?