READ THROUGH CAREFULLY SINCE THERE ARE SPECIFIC INSTRUCTIONS WITHIN
Due to D2L as a Word document on April 24 at 11:59 pm. Late submissions not accepted.
Using the Caterpillar case provided, please complete this assignment. Follow all instructions carefully. Not
doing so will reduce your grade. Supporting documents are in the D2L module for this assignment.
The written assignment is an internal memorandum (memo) to the Board of Directors of the Caterpillar
Corporation (CAT). Assume the position of a Corporate International Business Development Manager who has
been asked by the Board to create a 1000-word internal memo.
The memo should reflect on CAT’s global manufacturing position as provided in the case and address critical
questions from the board, provided below. Your responses to the questions should reflect the case material and
international business knowledge gained during your MCCB program. Do not add any current information on
the organization. Consider the scenario provided in the case only.
The memo must be 1000 words after the heading information. Balance the number of words across the five
questions (200-words for each). Write the memo with professional language as you are addressing the Board.
Since you are internal to the organization, you do not have to introduce it in the memo.
Confirm your work:
Communicates in a clear and specific way avoiding redundant wording.
Reflects your understanding of the subject matter within each question related to global business.
Provides a professional image in writing, tone, and document layout and appearance.
Be clear what question you are responding to by identifying the paragraph using a number to align to the
question. Do not include the question in your answer. Do not add any current or updated information on the
organization. You are able to use any material you have learned through the courses you have taken in the
college, such as notes or textbooks.
Here are the questions (the 1000-word count covers your answers):
Question 1: As Caterpillar Inc. expands into different countries, the firm faces increased foreign currency risk.
Discuss different types of currency risk and how each should be managed.
Question 2: When evaluating which foreign markets to serve, Caterpillar Inc. must consider certain variables
that influence the location-specific costs and benefits of serving those markets. Identify several of the most
important variables to consider and the implications of each on potential profitability.
Question 3: As Caterpillar Inc. implements its international operations, the firm needs to consider to what degree
it delegates decision making to foreign subsidiaries. Explain several advantages and disadvantages of
centralized versus decentralized decision making.
Question 4: Provide some important considerations to evaluate regarding how to arrange production and supply
chain operations. Provide specific details for each consideration.
Question 5: Discuss political, economic and legal criteria to assess the attractiveness of doing business in
different country-specific locations.
End of assignment document.
