McDonalds Business Strategies

McDonald’s corporation is one of the American multinational companies whose preference is a weak dollar. As far as the company is concerned, a surge in the United States dollar is seemingly a threat to them as this will stand to crimp the demand for the exports and this will typically reduce the value of the overseas sales when these sales are translated into the United States dollars. A strong dollar as far as this company is concerned means that they will be operating at losses (Laure, 2015). The company sells its products on an international market and when much of operations are done in overseas countries such as Europe, and the euro is stronger than the dollar, this will transpire into the company profits being denominated into the euros and upon conversion to the weak dollar, eventually, there will be more profits for McDonald’s (Laure, 2015). When considering the fair Federal Reserve policy, the McDonald’s shares rose and its gains also increased with a 2% increase in profits as a result of the conversion of the dollar against other rather strong currencies such as the euro and the British dollar (Sherri, 2003).

The company is also at the stage of rebuilding their products, and for this case, they sell more products than any other company in this food and beverage industry but despite this, they have increasingly suffered from changes in the consumer preferences and thus, a weak dollar may ensure that their overseas operations are ploughing in back increased profits for the company (Sherri, 2003).

Question two

In this case, the winners of the agreement will the Trump’s son. This is attributed from the fact that he will have diversified into an overseas country and for this case, this will bring more profits into the United States economy. Additionally, the stone business that will be revitalized in the process will also stand to benefit the son that will be aided by the highway through which he will easily transport his exports as well as having a local concentrated market. The losers in the case will be the Palestinians. This is due to the fact that despite the production operations being conducted on their soil, they will benefit only from taxes as with the cheap way of exportation. The local consumption will be consequently minimum and for this case, they will be just facing a depletion of their resources.

This deal is good for the Palestine. This is due to the fact that thy will be having a constant supply of the materials when they need them. The Israel government will also benefit from this deal as through the construction of the industries, this will boost the economy of the country. Additionally, the export highway they will construct will increase marketing activities and in the long run this will boost the economy of the country. For Eric, this is considerably a good investment, he will have benefited from a ready market as well as a reliable means of exportation