This exercise defines balance of payments as a statement of a country's economic transactions with the rest of the world and explains its significance and utility, along with other essential economic terms related to understanding and calculating balance of payments. An exercise for calculating a country's balance of payments accompanies the note.

This note provides an overview of fiscal-policy tools and how fiscal policy influences GDP through the income multiplier. The mechanics behind the income multiplier are explained and an algebraic derivation is provided. The note also provides examples of how parameters associated with disposable income (e.g., the tax rate and marginal propensity to consumer) influence the magnitude of the income multiplier.

This note provides a summary of the primary fiscal and monetary policies. It also provides a matrix of the expected effects on GDP and interest rates when these policies are enacted simultaneously.The matrix reflects the interactions of the policy mix when both policies are expansionary and contractionary, and when one is expansionary and one is contractionary.

The objective of this note is to provide an overview of monetary policy tools and the primary policy objectives. The mechanics behind the money multiplier are explained, and an algebraic derivation is provided. The note also provides examples of how parameters associated with the money multiplier influence its magnitude, including the propensity of the public to hold currency relative to demand deposits and the propensity of banks to hold reserves relative to demand deposits. The companion exercise allows students to walk through the mechanics of expansionary monetary policy.

This note describes different exchange rate regimes that are currently used in the world economy. It also discusses the advantages and disadvantages of fixed versus floating exchange rate regimes.

This note defines exchange rates and explains changes in exchange rates (appreciations and depreciations). The note also introduces the concept of the real exchange rate as an inflation adjusted measure of the purchasing power of a country's currency and as a measure of the competitiveness of a country's products. The note discusses factors that influence the real exchange rate. The note contains assignment questions.

This case can be used in management of international business courses to illustrate the analysis of market attractiveness, the importance of fit between firm capabilities and market requirements, and the effects of multimarket competition. It describes the international expansion challenges facing EAC Nutrition, the infant formula division of a Danish conglomerate, in early 2002. Growth in EAC's core markets of Thailand and Malaysia has stagnated and EAC is contemplating three expansion options: entry into India, geographic expansion within China, and product line expansion in existing markets.

This case describes Brazil's political and economic evolution from the end of WWII to October 1998, focusing on the policies and effects of the Real Plan, an economic stabilization plan implemented between 1994 and 1998. Contagion effects of the Russian Crisis in August 1998 led to massive capital outflows from Brazil and put pressure on foreign exchange reserves. Brazil needs to decide what actions to take with respect to its system of fixed exchange rates. See also the B case (UV1619) and C case (UV1620).

This case describes the events between October 1998 and early January 1999. To prevent a devaluation of the Brazilian real, the International Monetary Fund (IMF) provided a standby loan to Brazil. The case outlines the conditions under which the loan was granted and the effect of the loan on Brazil's balance of payments. In January 1999, Minister of Finance Cardoso faces two new challenges: getting congressional support for fiscal reform and a moratorium on debt payments declared by one of Brazil's states. See also the A case (UV1618) and C case (UV1620).

This case may be taught singly or used as a merger-negotiation exercise with "Daimler-Benz A. G.: Negotiations between Daimler and Chrysler" (UV0110).Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.

This case may be taught singly or used as a merger-negotiation exercise with "Chrysler Corporation: Negotiations between Daimler and Chrysler" (UV0085). Set in February 1998, the case places students in the position of negotiators for the company; their task is to value both firms, assess the potential earnings dilution of a combination, and negotiate a detailed agreement with their counterpart. The case can be used to explore such interesting negotiation issues as determination of a share-exchange ratio, treatment of major stockholders, and structuring a deal. Also, the case and exercise can be used to spark a discussion of acquisition in comparison with strategic alliance, or other less formal models of combination.