International Financial Management

J. Markham Collins, PhD

CASES:

Harvard Business Cases can be purchased through Harvard Business Online:

Do not purchase the “Porsche Changes Tack” case yet.

The Ivey Business Case can be purchased through the Ivey website:

I. Introduction to the International Monetary System

Book Chapters:

  • Appleyard et al. (2010) – Chapter 20, pp. 476-506
  • EunResnick (2009) – Chapter 2, pp. 25-59

II. Fixed and Floating Exchange Rates

Book Chapters:

  • Appleyard, Chapter 20, pp. 476-506 & Chapter 28, pp. 713-738
  • Shapiro (2010). Chapter 2, pp. 57-98
  • EunResnick (2009) – Chapter 5, pp. 108-133 & Chapter 6, pp. 134-164

Readings:

  • Mundell (1961)
  • McKinnon (1963)
  • Kenen (1966)

III. The Optimal Currency Area and the Euro

Book Chapters:

  • Shapiro, Chapter 3, pp. 99-134
  • Appleyard, Chapter 29, pp. 739-774

Readings:

  • Mundell (1998)
  • Mundell (1999)
  • Vasiliauskaitė, et al. (2007)
  • Kotil et al. (2009)
  • Zhao and Kim (2009)
  • Mundell (2002)
  • Quah (2009)

IV. Managing Translation and Transaction Currency Exposure

Book Chapters:

  • Shapiro, Chapter 10, pp.354-402
  • EunResnick, Chapter 8, pp. 192-220 Chapter 10, pp. 242-261

Readings:

  • Goldberg, S., & Drogt, E. (2008)

V. Economic Exposure

Book Chapters:

  • Shapiro, Chapter 11, pp.403-449
  • EunResnick, Chapter 9, pp. 221-241

Readings:

  • Collins (2010)
  • Choi, J., & Jiang, C. (2009)

Case Studies:

  • Lufthansa: To Hedge or Not to Hedge
  • Waterside Furniture Company
  • Porsche Exposed
  • Porsche Changes Tack

Listed References

Appleyard, D., Field, A., Cobb, S. (2009). International Economics. McGraw-Hill

Choi, J., & Jiang, C. (2009). Does multinationality matter? Implications of operational hedging for the exchange risk exposure.Journal of Banking & Finance, 33(11).

Collins, J. Markham (2010). Determinants of Economic Exchange Rate Exposure.Working Paper, 2010.

Eun, Cheol S., Resnick, Bruce G. (2009). International Financial Management. McGraw-Hill

Goldberg, S., & Drogt, E. (2008).Managing Foreign Exchange Risk. Journal of Corporate Accounting & Finance (Wiley), 19(2), 49-57.

Kenen, Peter B. (1966). The Theory of Optimum Currency Area: An Eclectic View. In Monetary Problems of the International Economy, Mundell, Robert A. and Swoboda, Alexander K. Eds. University of Chicago Press, 1969.

Kotil, Erdogan; Konur, Fatih; Çakici, Kemal (2009). Assessment of the Euro Zone According to the Criteria of the Theory of Optimum Currency Areas. International Research Journal of Finance & Economics, Issue 27, p29-39, 11p

McKinnon, Ronald I (1963). Optimum Currency Areas. American Economic Review, Vol. 53 Issue 4, p717, 9p

Mundell, Robert A. (1961). A Theory of Optimum Currency Areas. American Economic Review, Vol. 51 Issue 4, p657, 9p

Mundell, Robert A. (1998). What the Euro Means for the Dollar and the International Monetary System. Atlantic Economic Journal, Sep98, Vol. 26 Issue 3, p227, 11p

Mundell, Robert A. (1999). The Euro: How Important? CATO Journal, Vol. 18 Issue 3, p441, 4p

Mundell, Robert A. (2002). Does Asia Need a Common Currency Market? Pacific Economic Review, Vol. 7 Issue 1, p3, 10p

Shapiro, Alan C. (2010). Multinational Financial Management.John Wiley & Sons, Inc.

Vasiliauskaitė, A., Vitkauskas, M. (2007).THE ATTAINABILITY ANALYSIS TO COMPLETE REQUIREMENTS OF OPTIMUM CURRENCY AREA WITHIN EU. Economics & Management, 2007, p261-268, 8p

Quah, Chee-Heong (2009). THE FEASIBILITY OF EAST ASIAN MONETARY UNION AS AN OPTIMUM CURRENCY AREA. International Journal of Asia-Pacific Studies, Vol. 5 Issue 2, p65-90, 26p

Zhao, X., Kim, Y. (2009). Is the CFA Franc Zone an Optimum Currency Area? World Development, Vol. 37 Issue 12, p1877-1886, 10p

Recommended Readings

Cesarano, F. (2006).The Origins of the Theory of Optimum Currency Areas. History of Political Economy, Winter2006, Vol. 38 Issue 4, p711-731, 21p

Dellas, Harris; Tavlas, George S. (2009).An optimum-currency-area odyssey. Journal of International Money & Finance, Vol. 28 Issue 7, p1117-1137, 21p

Frankel, Jeffrey A.; Rose, Andrew K. (1998).THE ENDOGENEITY OF THE OPTIMUM CURRENCY AREA CRITERIA. Economic Journal, Vol. 108 Issue 449, p1009-1025, 17p

Frankel, Jeffrey; Rose, Andrew (2002). AN ESTIMATE OF THE EFFECT OF COMMON CURRENCIES ON TRADE AND INCOME.Quarterly Journal of Economics, Vol. 117 Issue 2, p437-466, 30p

Hutson, Elaine; O’Driscoll, Anthony (2010).Firm-level exchange rate exposure in the Eurozone.International Business Review, Vol. 19 Issue 5, p468-478, 11p

Kenen, Peter B. (1997). Common currencies versus currency areas. American Economic Review, Vol. 87 Issue 2, p211, 3p

Kenen, Peter B. (2010). There Was No Analytical Alternative to the Theory of Optimum Currency Areas. Econ Journal Watch, Vol. 7 Issue 1, p73-75, 3p

Kenen, Peter B. (2003). Making the Case for The Euro. International Economy, Vol. 17 Issue 1, p51, 4p

Makar, Stephen D.; Huffman, Stephen P. (2008).UK Multinationals' Effective Use of Financial Currency-Hedge Techniques: Estimating and Explaining Foreign Exchange Exposure Using Bilateral Exchange Rates. Journal of International Financial Management & Accounting, Vol. 19 Issue 3, p219-235, 17p

McKinnon, Ronald I. (1994). A common monetary standard or a common currency for Europe?Fiscal lessons from the United States. By: McKinnon, Ronald I.. Scottish Journal of Political Economy, Vol. 41 Issue 4, p337, 21p

McKinnon, R. (2002). Optimum currency areas and the European experience. Economics of Transition, Vol. 10 Issue 2, p343-364, 22p

McKinnon, Ronald I. (2002). MONEY AND FINANCE ON THE PERIPHERY OF THE INTERNATIONAL DOLLAR STANDARD. By: International Journal of Finance & Economics, Vol. 7 Issue 2, p87-96, 10p

McKinnon, Ronald I. (2004). Optimuim Currency Areas and Key Currencies: Mundell I versus Mundell II. Journal of Common Market Studies, Vol. 42 Issue 4, p689-715, 27p

Mishra, R. K., Sharma, C. (2010). Real exchange rate behavior and optimum currency area in East Asia: Evidence from Generalized Purchasing Power Parity. International Review of Financial Analysis, Vol. 19 Issue 3, p205-213, 9p

Mundell, Robert A. (1960). THE MONETARY DYNAMICS OF INTERNATIONAL ADJUSTMENT UNDER FIXED AND FLEXIBLE EXCHANGE RATES. Quarterly Journal of Economics, Vol. 74 Issue 2, p227-257, 31p

Mundell, Robert A. (1973). Uncommon arguments for common currencies. In H.G. Johnson and A.K. Swoboda, eds., The economics of common currencies (115-132). Harvard University Press, Cambridge.

Mundell, Robert A. (2000). Currency Areas, Volatility and Intervention. Journal of Policy Modeling, Vol. 22 Issue 3, p281, 19p

Ozer, I., Ozkan, I., Aktan, Okan H. (2007). Optimum Currency Areas Theory: An Empirical Application to Turkey. South East European Journal of Economics & Business; Issue 4, p75, 14p

Shapiro, A., & Rutenberg, D. (1976).MANAGING EXCHANGE RISKS IN A FLOATING WORLD. Financial Management (1972), 5(2), 48-58.

Silvestre, João; Mendonça, António (2007). The Endogeneity of Optimum Currency Areas Criteria: Some Evidence from the European Union and Portugal. International Advances in Economic Research, Vol. 13 Issue 1, p1-18, 18p

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