Publications
Publications
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- All HBS Web
(366)
- Faculty Publications (93)
- March 2005 (Revised January 2006)
- Case
Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures
By: Mihir A. Desai and Mark Veblen
How should a multinational firm manage foreign exchange exposures? 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... View Details
- October 2004 (Revised February 2007)
- Background Note
Foreign Exchange Markets and Transactions
By: Mihir A. Desai, Christina Pham, Kathleen Luchs and Yanjun Wang
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... View Details
Keywords: Currency Exchange Rate
- September 2004 (Revised February 2007)
- Case
Hedging Currency Risks at AIFS
By: Mihir A. Desai, Vincent Dessain and Anders Sjoman
The American Institute for Foreign Studies (AIFS) organizes study abroad programs and cultural exchanges for American students. The firm's revenues are mainly in U.S. dollars, but most of its costs are in eurodollars and British pounds. The company's controllers review... View Details
- March 2004 (Revised October 2013)
- Case
Innocents Abroad: Currencies and International Stock Returns
By: Mihir A. Desai, Kathleen Luchs, Elizabeth A. Meyer and Mark Veblen
What do international stocks contribute to the portfolio of a U.S. investor? How do currencies interact with stock price movements in determining the benefits of international diversification? This case helps students compare the risks and returns of foreign stock... View Details
Keywords: Diversification; International CAPM; CAPM; Home Bias; Currency Risk; Exchange Rate Risk; International Stock Market Returns; United States; Currency Exchange Rate; Stocks; Financial Markets; International Finance; Investment Return; Currency; Risk and Uncertainty; Emerging Markets; Investment Portfolio; Financial Services Industry; United States; Australia; Canada; China; Germany; India; Japan; United Kingdom
- March 2004 (Revised May 2005)
- Case
Foreign Exchange Hedging Strategies at General Motors
By: Mihir A. Desai and Mark Veblen
How should a multinational firm manage foreign exchange exposures? Examines transactional, translational, and competitive exposures. Describes General Motors' corporate hedging policies, its risk management structure, and how accounting rules impact hedging decisions.... View Details
- December 2003 (Revised October 2006)
- Case
Globalizing the Cost of Capital and Capital Budgeting at AES
By: Mihir A. Desai and Douglas Kurt Schillinger
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... View Details
- October 2003 (Revised January 2004)
- Case
The 2001 Crisis in Argentina: An IMF-Sponsored Default? (A)
By: Rafael M. Di Tella and Ingrid Vogel
At the end of 2001, Argentina's economy and society both appeared on the verge of collapse. Furious about controls imposed on the convertibility of their bank deposits into cash (the "corralito") and huge proposed government spending cuts amidst high unemployment and... View Details
- March 2003
- Article
Foreign Currency for Long-Term Investors
By: Luis M. Viceira, John Y. Campbell and Joshua S. White
- March 2001 (Revised February 2004)
- Case
Power to the States: "Fiscal Wars" for FDI in Brazil
By: Laura Alfaro, Yasheng Huang and Marios S. Kalochoritis
On January 6, 1999, Itamar Franco, the governor of the state of Minas Gerais, the second-largest state in Brazil, declared a 90-day moratorium on its debt payment to the federal government. The announcement triggered a run on the Brazilian currency, the Real, and... View Details
- February 2000 (Revised March 2001)
- Case
Alphatec Electronics Pcl
By: Stuart C. Gilson, C. Fritz Foley and Perry Fagan
The newly appointed CEO of an important high-technology company in Thailand must lead the company through a complicated debt restructuring. Due to the collapse of the Thai currency, the company's debt burden, like that of most Thai companies, has skyrocketed because it... View Details
- April 1997 (Revised February 2001)
- Case
Mexico in Debt
By: Richard H.K. Vietor and Eilene Zimmerman
Describes Mexico's political and economic system in the 1960s and 1970s. Focuses on: 1) the causes of the debt crisis in 1982; 2) elements of President de la Madrid's restructuring efforts between 1982-88; President Salinas's attempts to complete restructuring and... View Details
- September 1996 (Revised July 1997)
- Case
Grupo Sidek (A)
By: Kenneth A. Froot and Alberto Moel
A large Mexican conglomerate, active in tourism, real estate, and steel, is faced with difficult macroeconomic conditions beginning with the Peso crisis of December 1994. The conglomerate had extensive dollar-indexed liabilities and was caught in a crunch when the... View Details
- September 1996 (Revised November 1996)
- Supplement
Grupo Sidek (B)
By: Kenneth A. Froot and Alberto Moel
Supplements the (A) case. Designed to be handed out midway through class. View Details
- January 1996 (Revised February 1998)
- Case
Japan's Automakers Face Endaka
By: Debora L. Spar
In April 1995, the Japanese yen hit a post-World War II high against the U.S. dollar. The yen's relentless ascent affected firms on both sides of the Pacific, but fell particularly hard on Japan's big four automakers. This case explores how endaka--or"high... View Details
- October 1994 (Revised November 1995)
- Case
N.V. Philips Electronics - Currency Hedging Policies
By: Richard F. Meyer
Describes Philips Electronics' policies and problems relating to foreign exchange risk and hedging. Explains centralization versus decentralization of currency hedging, economic role versus transaction role, the difficulties of capturing the necessary information... View Details
- March 1993
- Teaching Note
Note on Foreign Currency Swaps (TN)
By: W. Carl Kester
Teaching Note for (9-292-043). View Details
- September 1992 (Revised March 1993)
- Case
Empresas ICA and the Mexican Road Privatization Program
By: Willis M. Emmons III and Monica Brand
Mexico's largest construction company, Empresas ICA, makes an initial public offering to international equity investors in April 1992 to help fund its participation in an ambitious new private-sector approach to highway development. Under the new program, launched by... View Details
- 1992
- Chapter
Exchange Rate Forecasting Techniques, Survey Data, and Implications for the Foreign Exchange Market
By: J. Frankel and K. A. Froot
Keywords: Currencies; Exchange Rates; International Macroeconomics; Monetary Policy; Currency Controls; Fixed Exchange Rates; Floating Exchange Rates; Currency Bands; Currency Zones; Currency Areas; Rational Expectations; International Finance; Currency Exchange Rate; Asset Pricing; Forecasting and Prediction; Policy
- April 1992 (Revised April 1997)
- Case
Reconstruction of Zambia
Examines the causes of decline--economic, social, and political--of the Zambian economy since 1974. It takes place at the time of the election of Frederick Chiluba, in October 1991. Examines the problems of economic development in Africa, and especially, of structural... View Details
- November 1991 (Revised April 2002)
- Background Note
Note on Foreign Currency Swaps
By: W. Carl Kester
Provides descriptive background about the development of an international market for currency swaps and, by means of a detailed example, instructs readers in the determination of swap flows and all-in costs of financing using market swap rates. A rewritten version of... View Details
Keywords: Currency