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This case presents a summary of U.S. trade and investment sanctions in effect as of 2006. The case examines in detail the U.S. sanctions against Cuba, and it discusses the challenges and opportunities that these sanctions have created for Cuba's largest foreign investor, Sherritt International. The discussion concerning Sherritt presents the wide array of forces that impact a business that is contemplating trade or investment with a country against which sanctions have been imposed. In spite of U.S. sanctions, Sherritt International, based in Canada, developed profitable businesses in Cuba, in mining, oil and gas, hotels and food processing. The U.S. policies, while imposing costs, also reduced the competition that Sherritt would otherwise have faced. The ability to work with the Communist government gave Sherritt a strong competitive advantage and a protected market. Sherritt had positioned itself with a first mover advantage if sanctions were lifted.

In 2001, the Dabhol Power Company (DPC) ceased operations following several years of bitter acrimony between the state of Maharashtra and the foreign owners. GE and Bechtel each owned 10 per cent of the equity, the Maharashtra State Energy Board (MSEB) owned 15 per cent and Enron owned 65 per cent. The Overseas Private Insurance Corporation (OPIC), a U.S. government agency, had lent $138 million and also had provided insurance against political risk for some of the other 19 foreign lenders. The lengthy and convoluted experiences of the Enron Dabhol power project are described in detail in Andrew Inkpen's case Enron and the Dabhol Power Company, Thunderbird Case # A07020008. The purpose of India's Negotiations Concerning the Dabhol Power Company 2001-2005 is to discuss the negotiation between the various foreign investors and the government of India in an attempt to reactivate the Dabhol project. Ultimately, in 2005 a settlement was negotiated. This case adds a further dimension to the case by Andrew Inkpen, and it can be taught most effectively as a sequel to that case.

A polymer chemist initiated a lawsuit against a national research institute for having failed to pursue a patent on his behalf, while he was employed as a post-doctoral research fellow. The chemist must now decide whether to accept a pre-judgement cash settlement of less than one sixth what his lawyer claims he is entitled to. Among the questions raised in this case are: Should the research institute have pursued a patent for an invention it did not own? In letting the institute file the patent application on his behalf, did the chemist not tacitly agree to assign his invention to the institute? The case outlines the importance of human resource policies stipulating the ownership of inventions made by scientists employed by an agency or others working onsite. It also shows how problems of assignment of intellectual property rights, if not resolved, can lead to failed technology transfer. The case also provides a detailed look at how a scientist would report an invention to its technology transfer office in order that a patent might be applied for.

A research institute has a concern with the reliability requirements of a military vehicle. Reliability is the probability that a system will accomplish its designated mission in a satisfactory manner or in more specific terms, the probability that it will perform in a satisfactory manner for a given period when used under specified operating conditions. Reliability of a weapon system is often expressed in terms of mean time between failure (MTBF). Two military vehicles were tested to obtain reliability life data for reliability evaluation. The objective of this case is to introduce reliability concept, MTBF, life data analysis and objective procedure for a decision making.

The proposed takeover of Noranda Inc. (one of the biggest mineral players in the world) by the Chinese state owned enterprise, China Minmetals Corporation, was cause for Canadian government concern as it required some understanding about the workings and objectives of state owned enterprises. There was particular concern around the labour issues and human rights violations in China, and the possible impact of these on the proposed takeover. Equally important, Canada ran the substantial risk of sending the wrong message to the People's Republic of China if it was to block such a takeover, and in some respects, to be seen as shutting its doors to one of the world's largest and most powerful emerging economies.

By 2006, in spite of lack a of significant reforms, the Russian banking system had recovered from the 1998 crisis, and its indicators such as capital, assets, and loans greatly exceeded the levels prior to 1998. The Russian economy had expanded rapidly, largely as a result of higher energy prices. However, many analysts were concerned about the large role played by oil and gas, and feared that energy exports were keeping the value of the ruble so high that non-energy manufacturing was being hurt. V. Bank had survived the 1998 crisis, and was considered one of the top 25 banks. In spite of this progress, its financial reports emphasized a series of concerns. Furthermore, Russia's political situation seemed precarious, as illustrated in the Khodorkovsky crisis, as a result of which Gazprom and the Yukos assets returned to majority state ownership. Some analysts pointed to a revival of authoritarian and arbitrary state intervention, and debated the possibility of a liberal political reaction in Russia similar to the Orange Revolution in the Ukraine.

Monsanto is a large chemical manufacturing company specializing in chemical products for agricultural use. This case explores the company's attempt from 2002-2004 to launch a version of genetically-modified wheat in Canada. It details opposition to the launch from farmers and environmentalists, and focuses on how these groups used communications to resist Monsanto's product launch.

A senior partner in a healthcare consulting firm has to decide what to do in the face of accusations from the chief executive officer of a major healthcare firm. The CEO, reading a prepared statement at a press conference, has accused the senior partner at Kohlberg Associates of a serious, unreported conflict of interest. The senior partner has to consider several issues, including if he should respond, how to respond, who to contact first, and most importantly, what he should say. Adding to his problem is the fact that he is in a state of shock and may not be in an optimum mental state.

Hugo Chavez often pointed to Simon Bolivar as the model for his political philosophy, centered on Bolivar's vision of a unified and independent Latin America. In 1998, Chavez ran in the presidential election, on a platform that opposed what he termed the savage neoliberalism of the 1990s. Chavez's speeches in the presidential election campaign emphasized the importance of national sovereignty and economic justice. As president, Chavez passed a new Hydrocarbons Law to enhance the share oil revenue that would be owed to the government; he created a new government-owned bank; he introduced a radical land reform law; and he encouraged takeovers by the government and employees of privately-owned factories. Venezuela sold oil to Cuba at reduced prices in return for professionals, especially doctors who created health missions in many low-income areas. Chavez sought to foment socialist anti-American revolutions throughout Latin America. In the context of this socialist agenda, analysts expected that Venezuela's economy would experience serious challenges in the coming years. The combination of high inflation, fiscal pressure, and slow growth would be a boiling political cauldron in which violent opposition could ferment.

Citigroup had become too complex for investors to understand, and so share values stagnated. Furthermore, over the period 2000 to 2005, many divisions within Citigroup were charged with illegal or unethical behavior. It seemed that Citigroup had simply become too large and complex for central management to prevent inappropriate decisions on the part of various groups scattered throughout the world. It appeared that Citigroup needed a new corporate culture to guide globally decentralized decision-making. Meanwhile, Citigroup undertook a substantial expansion in China. However, many other giant financial institutions were also expanding in China, intensifying competition. By 2006, analysts throughout the world were becoming increasingly concerned about the possibility of rapid inflation in China, and the government of China shared this concern.

The Canadian firearms program initially was established to set up a shared database. However, increasing costs of the firearms program is a concern for a number of Canadians. Should the federal government continue with the program, de-escalate or cancel the program. The case requires students to simultaneously evaluate the issues of the database design, software outsourcing, IS project management and change management. It can also be used to cover cost analysis, and political influences in decision-making.

The Rayovac case discusses the company's bold and risky acquisitions strategy as it diversifies into personal care and grooming, lawn and garden care, insecticides and pet foods. The company assumes it can successfully manage diverse product categories across diverse geographic markets in which it has limited experience. Success will depend on how well the acquired companies are integrated and managed under Rayovac's supervision. Increasingly, it will also depend on external conditions beyond Rayovac's control, such as macroeconomic conditions and foreign exchange fluctuations. Students should be able to analyze the case from the point of view of international business and strategy and perform a financial analysis of potential future returns using different assumptions for sales growth and margins of the various businesses acquired.

An investment advisor at a major brokerage is considering whether she should recommend Wal-Mart stock to her clients who do not currently have this stock in their portfolios. Students will be presented with basic valuation concepts including the dividend discount model, price-earnings model and applications of the capital asset pricing model.

A small proprietary trader of securities considers setting up a full service investment bank in the life sciences sector in the United States. This business opportunity has arisen because the Canadian government has been gradually lifting foreign ownership limits, US small cap companies are not as well-represented in stock portfolios of Canadians, and the US market is not as over-serviced by analysts as the Canadian market in life sciences and healthcare in particular. Several decisions need to be made including what types of services to offer, how many analysts to hire, where to set up the main office, and how to obtain the capital investment that is required.

For many decades, the automobile industry had played a major role in Canada's economy. A large portion of Canadian jobs depended on the auto industry, both directly and indirectly. However, by 2005, Canada faced serious globalization threats. Analysts were stating that in the future the number of automobile-related jobs in Canada would depend upon the international competitiveness of Canadian plants. To continue to increase wages would raise Canadian production costs so far above the levels in Mexico, China and other emerging nations, that the assemblers would shift production to low-cost jurisdictions. Meanwhile, the Big Three were losing market share to their non-union competitors, especially Toyota and Honda.

The U.S. Food and Drug Administration has recently approved a drug-coated stent for use in angioplasty procedures. The stent is expected to reduce the rate of repeat procedures due to restenosis, and to postpone the need for more invasive surgery such as coronary bypass. However, the drug-coated stent costs three times as much as an uncoated stent, which will increase the cost of the medical procedure. Public demand for the stent is overwhelming, because of the higher cost and huge demand, cost of medical care could increase dramatically. Students need to think about the trade-off between quality improvements and higher costs of medical treatment by looking at the impact on several stakeholders: patients, hospitals and insurers.

The chief information officer of Regent Street Bank is trying to weighing the merits of installing word recognition software at Regent. In light of recent financial scandals, a compliance tool like word recognition software would enable Regent to electronically monitor transactions between employees and clients. From a business standpoint, the ability to reduce the risk of illegal activities would reassure stakeholders in the bank: employees, clients and investors. Besides, Regent's email policy, available to all employees, clearly stipulated that electronic mail systems provided by Regent are its property and that the bank reserves the right to access, monitor and archive all email messages without prior notice. On the other hand, what if the word recognition software flagged a personal email message, resulting in his or her direct manager finding out about a private situation? After all, Regent's email policy did allow employees to use email for personal reasons. More importantly, how should the CIO consider the potential ethical issues, such as privacy.

Several new developments were threatening the success of Big Pharma. The patents on well-known blockbusters were reaching expiry, and generic manufacturers were eagerly waiting to produce lower-priced copies. Throughout the world, governments were taking a more active role in determining the prices at which drugs could be sold. The expansion of government insurance programs was adding to the complexity of the marketing challenges. Another change involved a shift towards direct-to-customer advertising, including the proliferation of information on the Internet, in addition to the traditional process of sales visits to family doctors. Research funding had doubled since 1991, but the number of new drugs emerging each year had fallen by half. The research and development process was also changing dramatically. Whereas blockbuster drugs had been developed as general treatments for common conditions, it was becoming increasingly apparent that not all patients reacted in the same ways to these drugs, and some - although a very small percentage - suffered serious side effects. This reality was expected to lead to the creation of a much larger number of niche drugs, each one targeted at a narrower group of patients. Related to this development was the growth of biopharma in which new biotech companies were creating drugs that could attack specific cells. Some analysts felt that Big Pharma was in a peculiar predicament in that profits were still very large, and this served as a barrier to necessary changes in strategy.

Less than one year after being awarded a contract to develop one of the world's largest offshore petroleum fields, Statoil's future in Iran appeared to be in jeopardy. Statoil was at the center of a corruption investigation that had resulted in the resignations of three of the company's top executives, including its CEO. The issue was alleged bribes paid by Horton Investments, on Statoil's behest, to secure lucrative petroleum development contracts. According to the Iranian government, Statoil used Horton to channel $15 million in secret bribes to unnamed government officials. Statoil's country manager, who had considerable experience in the region and was unaware of the secret deals, is left with the difficult task of trying to salvage the operation and rebuild the social capital he had established between Statoil and its Iranian counterparts.

A doctor is preparing for an upcoming meeting of the Ontario Drug Quality and Therapeutics committee. At this meeting the committee would need to make a decision about adding six new drugs to the Ontario formulary. The doctor needed to review the clinical and economic evidence on each drug in order to take a position on each at the meeting. The case introduces students to the concept of formularies and presents six representative cases for class discussion.