( TCO 6 ) In the 1980s , Caterpillar was negatively affected by a strong dollar and lost significant market share to Japanese competitor Komatsu . The situation prompted Caterpillar to revise its global strategy and by the 2000s , the company was in a much better position to deal with volatile currency values . More recently , a strong dollar has actually helped boost Caterpillar ’ s bottom line .
In the 1980s , a stronger dollar hurt Caterpillar ’ s competitive position , but in 2008 a stronger dollar did not seem to have the same effect . What had changed ? ( TCO 7 ) After joining the European Union in 2004 , Latvia established a currency board system that pegged the value of its currency to the euro . This system came under significant pressure when the effects of the financial crisis that began in the United States in 2008 spilled over into the country . Latvia was eventually forced to ask the International Monetary Fund and the European Union for assistance in order to get its financial system and economy back on track . As part of the assistance package , Latvia was required to make significant changes in its economic policy .
Why did the initial effort by Latvia ’ s government to stabilize the country ’ s currency fail ? Was the government attempting to stop a banking crisis or a foreign debt crisis ? ( TCO 8 ) Vellus Products is a small company that produces personal care products for dogs . Vellus Products initially began exporting when a Taiwanese business placed an order for its dog shampoo . Since then , Vellus Products has expanded its export business and today , international sales account for about half its total sales . Vellus Products now sells in 28 countries around the world .
Can other small companies learn from the experiences of Vellus Products ? Reflect on the tips of Vellus Products ’ founder Sharon Doherty for beginning the export process .
( TCO 8 ) By 2012 , India is expected to export half a million vehicles a year . South Korea ’ s Hyundai is leading the charge , exporting over one third of its Indian production . Suzuki and Nissan have both entered the Indian market more recently . Both companies see the Indian market as an important component in their future production and marketing strategies . Why did Hyundai and other global automakers choose India as a production location ? What makes India attractive to auto producers ? ( TCO 8 ) Microsoft is meeting the challenges of expanding into the potentially lucrative Indian market , a market where currently most people cannot afford a computer nor the Microsoft programs to run it . Microsoft has changed its highly standardized approach to markets to develop products specifically designed to meet the needs of the Indian market . In addition , the company has established local R & D operations that it hopes will generate new products for the market . How does Microsoft vary the marketing mix of its existing product offerings to gain traction with Indian customers ? What else has Microsoft done to make headway in India ?