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 Investor Relations (Links to an external site.) and locate the discussions about fluctuations and risk in interest rates or foreign exchange rates. Then, address the following:
- Indicate whether the foreign exchange translation has increased or decreased profitability for this quarter.
- 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.