The case deals with U.S. Financial Service Company (USFSC) and its CEO, John P. Lewis, and their consideration whether or not the company should open operations in India. USFSC would either partner with a local financial service company or invest in a new start-up bank branch or representative office in India. Although Lewis is conducting this analysis in 2012, the case covers the time period from 2005 to 2012 to provide background and to review the economic developments and political policies undertaken by the Indian government to recover from the global financial crisis of 2007-2009. The case requires a performance analysis of the financial ability of USFSC to undertake expansion into India and/or the case also requires an assessment of the economic and political risks of investing in India and how to mitigate those risks

The case deals with analyzing the key drivers of foreign direct investment (FDI) of U.S., Japanese, and European multinational financial services and other service providers investing in the Middle East. In this case, the focus is on investing in Riyadh, Saudi Arabia, and Dubai, United Arab Emirates. A sample of the foreign companies is interviewed to determine the key factors in their decision process, why they selected the form of operation they did, and what their business model is. The case is in three sections: the first shows how laws, requirements, and regulations have changed and become more receptive to foreign investment in recent years-this is done by comparing several business environmental characteristic indices and their change over time. The second section examines the exchange arrangements and framework for financial and capital transactions in the countries. The third section examines the experiences of several multinational companies in the financial services sector that have invested in the region.

It was February 16, 2005 and Edgar James, from Merrill Lynch, one of the leading investment banks, was reviewing the file regarding the leveraged buyout (LBO) of Masonite International Corporation (Masonite). A couple of months earlier, Kohlberg, Kravis and Roberts (KKR), one of the oldest and largest private equity firms, had teamed up with Masonite's senior managers and offered to take the company private via a US$2.52 billion LBO. A shareholder meeting to vote on the transaction was scheduled in less than 48 hours, but it was very likely that the deal would be voted down. Most of the major shareholders had already announced that they would reject the transaction, arguing that the premium offered by KKR was insufficient. As the head of Merrill Lynch's team working on the LBO, Edgar had to finalize his recommendation before talking to Masonite's Board of Directors. Was KKR about to walk out? After all, there were increasing concerns about the profitability and growth prospects of building products companies in general and Masonite in particular, due to the ever-increasing cost of raw materials, the negative impact of the tightening of monetary policy on consumer spending and mortgage rates, and the debatable health of the housing market. But Masonite was still one of the best-positioned companies in the industry, with strong earnings and cash flows. Would this be enough to entice KKR to increase their offer?

It was May 19, 2004, and Ralf Thomas, analyst at SBU Investment Research, was reviewing the Form 40-F that one of the companies he was covering, Masonite International Corporation (Masonite), had filed with the Securities and Exchange Commission (SEC). Masonite was one of the world's largest manufacturers and merchandisers of doors, door components, and door entry systems, headquartered in Mississauga, Ontario. Its latest results were very good, with strong growth as well as high margins and cash flows. The company was on track to pay down debt and be well positioned to achieve the investment-grade credit rating it was coveting. But despite all this good news, Ralf had some concerns; he was wondering whether this strong performance was sustainable. He knew that earnings of building products companies were cyclical. They were generally sensitive to the state of the economy, demand for housing, consumer sentiment, sharp increases in interest rates, changes in buyers' credit terms, and rising prices of raw materials such as wood products and steel. Most economies around the world were recording full-employment and noninflationary growth rates, but real growth was so high that central banks were mooting the idea of raising interest rates. In addition, there were now concerns that there might be housing bubbles in several geographic areas. But even more worrying, the price of raw materials, like steel, had more than doubled over the last 12 months, and there were shortages, in particular in North America, Masonite's main market. If sales were to soften in an environment marked by high production costs and rising interest rates, Masonite's margins and cash flows could be under pressure. Ralf still had a "buy" rating on the stock. Was it time to change it to a "hold" or even a "sell"?

This case is about a large U.S.-based manufacturing company considering if it should shift its production from China to India to maintain it global competitiveness, particularly for selling into the U.S. market. This case study examines in detail the recent (2003-2010) economic performance of India, including changes in government policies toward foreign investment in India. The case also reviews recent financial market and product developments in India. Finally, the case study also describes, illustrates, and applies a process of country risk analysis for foreign companies considering investment in a rapidly growing emerging market economy such as India.

This case examines in detail the causes and role played by structured finance in the past four global financial crises, particularly the 2007-2010 crises. It also describes and analyzes how securitization and structured products work and the value they add to finance, and how structured products are constructed, their value and how they are used in finance. Finally, the case explores the impact of the proposed changes to banking regulations in Basel II and III to reduce the risk associated with securitization and its use.

Throughout 2008 and into early 2009, the executive team of World Communications Corporation (WCC) became deeply involved in the examination of whether it should invest in a large production and distribution operation into Saudi Arabia. The Saudi Arabian economy has grown dramatically, thanks to rising oil prices and export revenues during 2008. In early 2009, Seth Thomas, the CEO of WCC, was faced with three potential alternatives. The first one was to risk building a manufacturing plant and distribution center in Saudi Arabia, and strengthen the company's competitive position abroad. The second alternative was to expand plant capacity at home and continue to export, as the company had done so successfully for years. The third alternative was to wait and delay both decisions because of the uncertainties caused by the global financial and economic crises in 2008. Whether Saudi Arabia could manage its economy to avoid the worldwide recession was an open debate, but preliminary data were encouraging. The case examines government regulations and treatment of foreign investment and the level of education of the labor force and educational system to support the growth of local executives and managers.

In May 2008, the executive team of MLC Corporation (MLC) became deeply involved in the examination of whether it should expand its production and distribution operations into Russia. The Russian economy had grown dramatically, mainly thanks to rising natural gas exports to Europe. A sharp rise in energy prices had further accelerated the growth of the energy sector, as well as supported the expansion of the economy. Thus, in early January 2009, Mark Olexi, the CEO of MLC, was faced with three potential alternatives. The first one was to expand plant capacity at home and continue to export, as the company had done so successfully for years. The second alternative was to risk building a manufacturing plant and distribution center in Russia, and strengthen the company's competitive position abroad. The third alternative was to await and delay both decisions because of the uncertainties caused by the global financial and economic crises. Whether Russia could manage its economy to avoid the worldwide recession and an internal financial and economic crisis was an open debate. In addition, Russia had just experienced a leadership change, energy prices had collapsed, and the Russian-U.S. relationship had deteriorated.

The case Vanguard Security Corporation, a Portuguese company, explores exchange rate and trade financing decisions for a transaction between a U.S.-based importer and a European exporter. It focuses on transaction and economic exposure identification and risk management. It also explores corporate finance and bid risk management issues. The case involves quantitative and qualitative solution techniques as it requires using four fundamental exchange rate forecasting techniques and selecting between six exchange rate hedging products to find the best solutions based on an assessment of the needs and risk appetite of the VSC corporate treasurer.

This case study is based on the actual experiences of several companies that we have worked with that want to expand their business into emerging markets. The case outlines and illustrates a framework of analysis that focuses on assessing foreign exchange rate risks, country risk analysis, and management's decision-making process in selecting a target country and about managing the risks associated with this decision. The case provides data on four possible target countries for which methods of forecasting exchange rates (PPP, IRP, IFE, B/P) can be used. The case also provides the opportunity for assessing whether a government is pursuing appropriate macroeconomic policies to avoid crises. Finally, the case allows for an evaluation of the probability of a foreign exchange, financial, foreign debt, and banking crisis in one or more of the four countries. While the case can be used to study macroeconomic policy decisions, its real purpose is to examine management's decision-making process to identify and manage possible risks associated with expanding into emerging markets.

The case describes the foreign exchange problems faced by Mr. John Christopher, in the spring of 1995. Christopher's company, TCAS, had just been awarded the bid to deliver and install a new management information software system and local area network computer system for a customer in Canada. TCAS is a US-based company with no previous international experience. The company, as a result of the bid award, was confronted with a very large foreign exchange exposure. TCAS has additional problems, including an operating loss in the previous year, and the potential of continuing losses in the current year in the absence of the subject sale. TCAS needs to make a profit on this contract, manage its foreign exchange exposure, and restructure its balance sheet.