I. Case Summary/IntroductionThe case explains the unique currency exchange challenge facing vehicle manufacturers Hyundai and Kia. Both manufacturers rely heavily on selling their vehicles in the United States. In 2006, when the value of the South Korean currency rose and the US dollar fell, it meant that vehicles sold in the US were not worth as much when the profit was transferred into won. Despite the increase in sales, both companies reported a loss in 2006 due to this conundrum. To combat this problem, Hyundai and Kia have opened manufacturing plants in the United States. This allows companies to produce vehicles in both locations and production can be shifted depending on the value of the currency (Hill, 2011).II. Analysis of Case Study Questions Case Study Question 1: Explain how increasing the value of the Korean currency, the won, relative to the dollar affects the competitiveness of Hyundai and Kia's exports to the United States? Hyundai and Kia rely largely on exports for their sales. As a result, they are vulnerable to changes in exchange rates. When the won, the South Korean currency, re...