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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 750 |
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Also, in 1977, VW raised capital from the Eurobond market, this diversification of VW?¦s liabilities not only helped VW to reduce tax burden but also shifted VW?¦s financial cost from DM to US dollar to offset the fall in the revenues produced by the appreciation of the DM.
Mid1980s-1992: VW converted its Mexican assembly plant into a manufacturing plant servicing the US market...
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This decision provided less currency exchange risk as the Mexican peso was more closely related to US dollar than to the DM. Mexican low wage production was another useful tool to offset potential depreciation in the US dollar currency. Furthermore, the decision of producing in Puebla a new generation of Jetta and Golf to supply US and Canada markets was another strategic move to control risk (diversification of production)...
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General points of the essay
Volkswagen Expansion
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