[VRWCmember]

Then maybe you misunderstood me: I am arguing that one of the reasons companies locate their operations overseas is to minimize their risk with regard to exchange rates.

I got that, and my point in responses was that (1) minimizing exchange rate risk is not one of the considerations in locating plants overseas, and (2) locating plants overseas actually creates new exchange rate risks (while in some cases also creating hedging potential for other exchange rate risks) rather than reducing exchange rate risk.

[1rudeboy]

Are you assuming that the foreign plant assembles with imported parts, or sources its parts domestically?