1. What are the implications for currency risk of TEK focusing its manufacturing in the United States but generating most of its sales abroad? Competitors like HP and Kodak are more geographically diversified in their sourcing. What advantages does this create for them?
2. The case lists various approaches TEK follows to minimize its exposure to currency risk. If hired by TEK, what other strategies and tactics would you recommend to reduce the firm’s exposure even further? Justify your answer.
3. TEK management attempts to maintain a reasonable ratio of debt to equity. Most firms prefer relatively low levels of debt in their capital structures. Why? What other approaches could TEK use to generate financing for its international operations? What approaches can TEK use to transfer funds within its operations worldwide?
4. The case describes approaches TEK follows to minimize its international tax liability. Based on your reading of the chapter, how would you advise TEK management to further reduce its taxes around the world?

An oscilloscope is a measuring device with a display screen that checks the condition of electronic equipment. In 1946, founders of U.S.-based Tektronix, Inc. (www.tek.com) built their first oscilloscope from electronic parts purchased from government surplus sales. TEK, as the firm is known, went public in 1963. Its oscilloscopes and other measuring devices contributed immensely to the development of computers and communications equipment.