There are many challenges when it comes to global strategic plans for businesses. One involves international cash management, due to the risk of currency fluctuations and interest rate changes in the global market. Review the quarterly financial statements for Deere & Company from the website, John Deere Investor Relations (Links to an external site.). Scroll down on the homepage until you see “Annual Report” under the section heading titled, “Annual Report & Proxy Statement.” Click on the Annual Report, and then read the section on page 33 titled “Financial Instrument Market Risk Information.” Read the sections on Interest Rate Risk and Foreign Currency Risk.
In your discussion post,
a. Indicate whether the foreign exchange translation has increased or decreased profitability for this quarter.
b. Explain strategies a company might use to reduce the risk associated with foreign exchange fluctuations.
Interpret the impact of foreign currency translation on profitability for Deere & Company.