1. Overview: The Finance Function in a Multinational Setting

2. Finance and Global Competition Multinational Corporations Other Multinational Commercial Entities Competitive Advantage and Business Strategy in the Global Arena

3. Foreign Exchange Markets Fixed Exchange Rates –Bretton Woods Agreement –Exchange Rate Treaties Floating Exchange Rates –Transition Period in Early 1970s –G7 Currencies –European Currency Unit (Euro) –Asian Crisis & other recent crises

4. Parity Relationships Interest Rate Parity Purchasing Power Parity Case 1: Walt Disney Yen Financing

5. Risks in the International Arena Interest Rate Risk Purchasing Power Risk Market Risk Exchange Risk Political Risk

6. Risk Management Forward Contracts Futures Contracts Options Swaps Other Interest Rate Risk Management (IIRM) products –Caps –Floors –Collars

7. Risk Management Cases Case 2: BF Goodrich-Rabobank Interest Rate Swap –Pioneering swap arrangement Case 3: Goldman, Sachs, & Co. –Nikkei Put Warrants Case 4: State of Connecticut Municipal Swap –Yield Curve Arbitrage and Risk Management

8. Performance Assessment & Portfolio Management Problems with Accounting Measuring and Managing Economic Risk Exposure International Market Risk

9. International Investment & Financing Decisions International Cost of Capital International Capital Budgeting –Case 5: Southport Minerals

11. International Financial Engineering Case 6: Citicorp –Innovation in the Eurodollar Bond Market