Udo Pfeiffer, the CEO of SMS Elotherm, a German manufacturer of machine tools th
ID: 1102135 • Letter: U
Question
Udo Pfeiffer, the CEO of SMS Elotherm, a German manufacturer of machine tools that engineer crankshafts for cars, signed a deal in late November 2004, to supply the US operations of DaimlerChrysler with $1.5 million worth of machines. The equipment would be manufactured in Germany and exported to the United States. When the deal was signed, Pfeiffer calculated that at the agreed price, the machines would yield a profit of $30,000 each. Within three days that profit had declined by $8,000. The dollar had slid precipitously against the euro. SMS would be paid in dollars by DaimlerChrysler, but when translated back into euros, the price had declined. Since the company
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A)
1 Currency confusion
Not long ago (in 1999), SNP leader Alex Salmond described the pound as a
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