August 19, 2013
Chapter 10 – Inflation
Sample Responses to Discussion Questions
1) In 2011, Caterpillar generated 70 percent of its sales and revenue from outside the United States.
Why is this relevant to our study of inflation?
2) Given high inflation rates in regions in which Caterpillar has production facilities, what decisions
might management consider making?
3) Inflation rates in the United States have been fairly steady in recent years. Does Caterpillar need to
develop different business strategies for its ventures within and outside the United States?
4) The inflation rate in different regions of the world is outside Caterpillar’s control. What can the
company do to protect itself from the adverse effects of inflation such as rising commodity or
component prices and rising labor rates?