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After experiencing long, multiyear surges and slides in past decades, by summer 2013, the dollar had been range-bound against the euro. In this case, by assessing potential capital flows, students consider whether global currency market trends would propel the dollar higher, or if the past few years were just a pause in a much longer dollar depreciation episode. Suitable for both core and elective MBA courses in global financial markets and international finance, this case explores factors pointing to further euro appreciation and to others favoring the dollar. Sorting through mounds of evidence is necessary before forecasting the exchange rate's likely path. Filtering that evidence requires thinking about FX markets, prospective monetary policies, and past and prospective international capital flows.

Management science, operational and financial risk of overseas enterprises.

This case is mainly applicable to international business course and project management course.

Since 1992, the Great Mekong sub-regional economic cooperation between China and ASEAN countries was officially launched and set free economic zone. Hydropower is starting to develop in recent years in Cambodia, and it is a good significance to Cambodia's industry. Furthermore, most of hydropower plants in Cambodia are built by Chinese companies. Thus, this paper will analyze the current risk and condition of Kamchay hydropower, as well as the development of Chinese enterprise for Cambodia economic and social development.

This case study provides students concepts on international business, project management, and operational risk of overseas enterprises. The principle of project contracting, labor cooperation, and project financial in international process are considered together with the implications they have for advancing understanding of the problem of the host country's government interests and the various risk of enterprises in international BOT projects.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

This case examines the exchange rate risk of a U.S.-based manufacturer of women's luxury shoes that has recently introduced its product in Japan. Students are asked to evaluate the extent of the firm's exposure to currency risk and whether hedging via forward contract or currency option is advisable.

A hedge-fund strategist had two decisions to make. First, what was the path of core euro zone long-term interest rates likely to be over the next year? Was the dramatic decline in German long rates over the past few years an aberration that would soon be reversed, or was it part of the “new normal” that would persist for some time? Second, how would periphery long rates evolve relative to core rates? That is—the spread between long rates in the likes of Greece, Spain, and Ireland and those in Germany—how would they evolve over the next year? Was the dramatic divergence in euro zone long rates likely to persist, or would the coming year see a continuation of the modest reconvergence that has occurred since mid–2012? He knew many factors influenced long-term interest rates; he would have to use his entire toolkit to address this issue. The evidence was in no way clear-cut. Some factors pointed toward lower German rates, some toward higher, some toward a widening of euro zone spreads (even a dissolution of the euro zone as we know it?), and some toward reconvergence.

Finance.

Graduate/Under Graduate Progammes

The case presents the valuation gap between general equity and DVRs shares of TML. The case presents DVRs as an alternate asset class for investment for retail investors and shows its various characteristics taking the case of TML. The case presents global evidences of the valuation gaps and hence helps in making informed decisions. The case makes the reader perplex with a varied global evidence and then presents other data (increasing interest by institutional investors in DVRs of TML) which may help to take final decision “BUY or NOT”.

The readers will be able to recall “how do finance managers use a diverse type of equity for providing new sources of finance?” The readers will be able to describe the characteristics of differential voting right (DVR) shares. The participants will be able to present various reasons for the price difference between DVR shares and general equity shares. The readers will be in a position to analyze the price pattern of Tata Motors Limited (TML’s) DVR together with global experience. The participants will be able to justify the trade-off between extra dividend and loss of voting rights in the case of DVR shares.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 1: Accounting and Finance.

The learning outcomes of this study are as follows:

1. the benefits of differential pricing over uniform pricing;

2. the differences between second- and third-degree price discrimination;

3. the rationale for charging different prices for segments having different willingness to pay; and

4. how different prices for the same product can lead to perceptions of unfairness and how companies might manage such an issue.

This case outlines the decisions that Adar Poonawalla, the CEO of Serum Institute of India (Serum), had to make in late April 2021 concerning its pricing for the COVID-19 (Covid) vaccine. Serum was the world’s largest manufacturer of vaccines, and its Covishield vaccine had received regulatory approval, but faced an unusual challenge and opportunity. In most countries, governments had procured Covid vaccines from manufacturers and then delivered the vaccines to consumers free of cost. But in India, there was a three-tier pricing system. While the Government of India had committed to free vaccines in government-run public hospitals, it also allowed vaccine makers to directly sell vaccines to state governments, as well as private hospitals, who were at liberty to charge consumers for the vaccines. This created an interesting pricing dilemma for Serum: as different customers had different willingness to pay, should Serum use differential pricing? Would such a tiered pricing system be considered fair? How many different price points should Serum maintain? By exploring these and related decisions that Poonawalla had to make, the case is intended to teach price discrimination.

The case is intended for graduate-level courses in marketing, pricing and economics. This case illustrates the principles of differential pricing/price discrimination. More specifically, it highlights pricing strategies motivated by second- and third-degree price discrimination in an emerging market’s health-care context. From the information in the case, the student can learn to apply the concepts of second- and third-degree price discrimination in marketing. After working through the case and assignment questions, instructors will be able to help students understand the following concepts:

Teaching objective 1: the benefits of differential pricing over uniform pricing.

Teaching objective 2: the differences between second- and third-degree price discrimination.

Teaching objective 3: the rationale for charging different prices for segments having different willingness to pay.

Teaching objective 4: how different prices for the same product can lead to perceptions of unfairness and how companies might manage such an issue.

Teaching notes are available for educators only.

CSS 8: Marketing

Northern Textiles (NTL) used highly complex derivatives to hedge its currency risk, and these structured products have been profitable in the past. But in 2008, unanticipated movements in exchange rates have led to serious losses. Seth, the Chairman of NTL, has come to know about the losses on a specific deal, but the Treasurer has ensured that he is the only person who understands the derivative book in its entirety. Though Seth is not aware of how grave the problem is, he realizes that he must review NTL's risk management policies and perhaps even replace the CFO.

Fingerhut, based in Minnetonka, Minnesota, is a direct-marketing company that sells a smorgasbord of consumer goods through an array of specially targeted catalogs. In November 1996, an article in the Star Tribune, a major Minneapolis newspaper, drew attention to a class-action lawsuit pending against Fingerhut that suggests the firm made its profits by exploiting the poor. Several civil rights groups rallied around the suit and submitted amicus curiae in favor of the litigation. The case illustrates issues in ethics and management communication. Discussions focus on the constituencies. Is Fingerhut exploiting its customers or providing them with an affordable method of obtaining valued consumer goods on credit? Do retailers have a duty to offer products at reasonable prices? Are the high interest rates reasonable given the risk? What are the options: pawn shops, rent-to-own? What is the profile of the typical Fingerhut customer? Discussions also focus on the issues communicating to the constituencies. How much damage will the lawsuit do to Fingerhut's image as an ethical, socially conscious company? What communication strategies can the firm employ? Should it react to the lawsuit? What should it tell its employees?

A privately held U.S. plumbing parts manufacturer is negotiating the purchase of a Brazilian plumbing manufacturer specializing in water conservation. The case provides sufficient information to value this cross-border acquisition and includes a brief summary of valuation techniques in this context. A particularly rich discussion arises from two points: A forecast of exchange rates from a forecasting company differs from forecasts based on inflation, and two methods are suggested for dealing with country risk (sovereign spread and scenario analysis). A teaching note and instructor and student spreadsheets are available to accompany this case.

This case provides an opportunity to discuss the design and implementation of a Public Private Partnership project. It describes the Delhi Airport Metro Express Line project from conception to completion, and the subsequent dispute between the Public and Private partners leading to the Concession Agreement going into arbitration. Students discuss the reasons for failure and come up with suggestions for another metro rail project currently in the design stage.