In its 2014 Annual Report, Goodyear noted, "The increasing strength of the U.S. dollar created unfavorable foreign currency translation for many of our businesses around the world."
a. What did the company mean by the "increasing strength of the U.S. dollar"?
b. What did it mean by an "unfavorable foreign currency translation"?
c. During this period was Fed policy attempting to reach a point on the short-run Phillips curve representing higher unemployment and lower inflation, or a point representing higher inflation and lower unemployment? Briefly explain.
d. What connection is there between Fed policy and this statement in Goodyear's annual report?