The Brazilian oil company, Petrobras, is evaluating the acquisition of an Argentine oil company, the Perez Companc Group (Pecom). The acquisition would increase Petrobras' oil reserves and expand its interests outside Brazil, a significant step for the largest company in Brazil. Pecom is for...

With electricity generating businesses around the world, AES Corp. is seeking a methodology for calculating the cost of capital for its various businesses and potential projects. In the past, AES used the same cost of capital for all of its capital budgeting, but the company's international...

What price should Dow Chemical bid for PBB, a petrochemical complex that is being privatized by the Argentine government? To answer this question, students are forced to consider the role of country risk, the underlying currency exposure of the business, and how to value an investment...

Provides information on the foreign exchange market and exchange rate movements. Describes the different types of foreign exchange transactions, including spot transactions, forwards, swaps, futures, and options. Includes worked examples to help students understand the different instruments and...

How can a multinational firm analyze and manage currency risks that arise from competitive exposures? General Motors has a substantial competitive exposure to the Japanese yen. Although the risks GM faces from the depreciating yen are widely acknowledged, the company's corporate hedging policy...

How should a multinational firm manage foreign exchange exposures? The case examines transactional and translational exposures and alternative responses to these exposures by analyzing two specific hedging decisions by General Motors. Describes General Motors' corporate hedging policies, its...

SUBJECT AREAS: Currency, Foreign exchange rates, Inflation, Macroeconomics, Monetary policy, Regulatory agenciesCASE SETTINGS: Singapore; Government amp; regulatory; 10,000 employees; 2002The Monetary Authority of Singapore (MAS) is responsible for the country's monetary policy, and its decisions...

SUBJECT AREAS: International finance, Joint Ventures, Negotiations, Political risk, Shareholders relationsCASE SETTINGS: Czech Republic; Broadcasting industry; $170 million revenues; 1997This case examines how insiders can expropriate value from shareholders in emerging markets when property...

SUBJECT AREAS: Financial management, Financial strategy, Financing, International finance, Negotiations, Taxation, ValuationCASE SETTINGS: United States; Entertainment industry; $400 million revenues, 100 employees; 2002The head of production for Rexford Studios must analyze the terms and value...

SUBJECT AREAS: Accounting, Corporate control, Financial management, Financial statements, Financial strategy, International finance, Mergers amp; Acquisitions, Taxation, ValuationCASE SETTINGS: United States; Industrial goods; $2,264 million revenues; 15,000 employees; 2002In response to Stanley...