Of course, BMW also hoped to take advantage of Rover's 13% market share in the UK. BMW has always placed a heavy emphasis on improving its logistics: "Even before the establishment of its U.S. plant, BMW was spending several hundred million dollars annually in North America to procure parts and materials for its German-made vehicles. Although transportation costs were higher, exchange rates and lower production costs made them cheaper to import to Germany than to acquire [them] domestically or elsewhere in Europe" (Kim & McElreath 2001).

Diversification of marketing and advertising is also important in risk management: it allows a company to offer several different types of models and different price points. This allows a company to minimize the risks of currency changes in the exchange rates. For example, when a currency is devalued within a nation, a company must decide if it should cut production values and cut costs,...
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