Assume for a moment that you are an analyst in the finance department for Caterpillar (CAT). You support the Asian business unit. Business unit leaders are preparing their operating plan for next year. As the depend on economic forecasts to produce sales projections and production costs, they also need a forecast on currency exchange rates.
Tell me two things:
1. What is the process you will follow to build the forecast?
2. What are the most important elements of the forecast (after its accuracy)?