TAILIEUCHUNG - Foreign Exchange Hedging Strategies at General Motors Critique

Review important topics, discuss material covered well, cover material missed As the main contents of the lecture "Foreign Exchange Hedging Strategies at General Motors Critique". Invite you to refer to the lecture content more learning materials and research. | Foreign Exchange Hedging Strategies at General Motors Critique Luke Bennrubi Britten Feldman Hillary Felice Drew Ferwalt Overview Review important topics Discuss material covered well Cover material missed GM Hedging Policies Commercial (Operating) Exposure: Volatile currencies are hedged for only 6 months and risk threshold lowered to $5 million from $10 million Commercial (Capital) Exposure: Amounts in excess of $1 million not $10 million (typo) Accounting Policies: Held gains and losses from hedging in shareholder’s equity account Reporting: Hedging activities closely tracked; policy lead to passive switch GM Hedging Policy Objectives Reduce cash flow and earnings volatility Minimize the management time and costs dedicated to global FX management Align FX management in a manner consistent with how GM operates its automotive business Passive vs. Active Hedging Currency exposure is inevitable when doing business in foreign markets Passive Hedging Uses forward/options contracts .

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• Foreign Exchange Hedging Strategies at General Motors Critique
• Review important topics
• Discuss material covered well
• Cover material missed