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one strategy with profit-enhancing appeal that a company can pursue to reduce its exposure to adverse exchange rate adjustments to the total production cost of pairs shipped from a production facility in one geographic region to distribution warehouses in a different region is to

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(a) Pass the cost of the adverse exchange rate adjustment along to purchasers of the company's footwear by raising the prices of all footwear sold in a geographic region by the full amount of any adverse exchange rate adjustment per pair that the company incurs in that region.

(b) Build sufficient plant capacity in each of the four geographic regions to supply most/all of the pairs needed in that region and greatly reduce (or eliminate) the need to ship pairs to a distribution warehouse from a plant in a different geographic region-such a strategy also cuts a company's payments of import tariffs.

(c) Build plants in geographic regions where there are adverse exchange rate cost adjustments and ship pairs from these plants to regions where there are favourable exchange rate cost  adjustments.

(d) Pursue a strategy of ignoring exchange rate cost adjustments that are either favourable or unfavourable--the sizes of the favourable and unfavourable exchange rate adjustments in each geographic region will cancel each out over the various decision rounds and thus have no net effect on the company over the long run.

(e) pursue a strategy of lowering the prices of all footwear sold in a geographic region by the full amount of any unfavorable/adverse exchange rate adjustment per pair that the  company  incurs in that region and raising the prices of all footwear sold in a geographic region by the full amount of any favorable exchange rate adjustment per pair that the companies incurs in that region--such pricing adjustments act to maximize the resulting gains in total profits.

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