Business Finance 825 Schedule

 

I.          Introduction to International Finance

 

1/6       Exchange Rates

            E&R chapters 1 and 2.

 

1/8       Corporate Governance around the World

            E&R chapter 4.
Minicase: Parmalat (in textbook)

 

1/13     Parity Conditions in International Finance.

            E&R chapters 5 and 6.
            Minicase: The Euro (in textbook)

 

1/15     Currency Options

            E&R chapters 7.

 

1/20     Swaps
            E&R chapter 14.

 

II.        Measuring and Managing Exposure to Exchange Rates

 

1/22     Measuring and Managing Transactions Exposure

E&R chapter 8.

*          Hedging Currency Risks at AIFS (UK – world, 2004)

 

1/27     Measuring and Managing Translation Exposure

E&R chapter 10.

Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures (US – world, 2001)

 

1/29     Global Sourcing and Real Exchange Rates

*          Global Bubbles Incorporated: Global Sourcing Rationalization (UK-world, 2001)

 

2/3       Measuring and Managing Operating Exposure

            E&R chapter 9.

Foreign Exchange Hedging Strategies at General Motors: Competitive Exposures (US – world, 2001)

 

2/5       Midterm – in Class    

 

 

III.       The Global Marketplace for Capital

 

2/10     International Portfolio Investment and Cost of Capital

E&R chapters 15 and 18

Globalizing the Cost of Capital and Capital Budgeting at AES (US – world, 2003).

 

2/12     Managing and Pricing an International Bond Offering

            E&R chapter 12.

Hutchison Whampoa Limited – Yankee Bond Offering (US -- China, 1997).

 

2/17     Managing and Pricing an International Equity Offering

            E&R chapter 13.

*          Nestlι and Alcon – the Value of a Listing (Switzerland – US - Europe, 2001)

 

2/19     The Capital Structure Decision

            E&R chapter 17.

            Geeli (China - 2005)

           

IV.       Corporate Strategy and Foreign Investment Analysis     

 

2/24     Offshoring/Outsourcing and Valuation.

*          Offshoring at Global Information Systems, Inc. (US – world, 2004)

 

2/26     Project Finance

Petrolera Zuata, Petrozuata C.A. (US – Venezuela, 1997)

 

3/3       Cross Border Joint Venture

            E&R chapter 16.

SUN Brewing (A) (India – Russia - Belgium, 1998-99)

 

3/5       Cross Border Joint Venture

            SUN Brewing (B) (India –Russia – Belgium, 2004)

 

V.        Global Financial Turmoil

 

3/10     Bailouts and Bans

            Financial Times: http://www.ft.com/indepth/global-financial-crisis 

 

3/12     Can a country to bankrupt?
            Iceland: http://en.wikipedia.org/wiki/2008_Icelandic_financial_crisis

 

3/17     Optional Final Exam during class-time, 3:30-5:18.

            (For students who opt not to write a paper on Global Financial Crisis.)