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ERIC Number: EJ856873
Record Type: Journal
Publication Date: 2009
Pages: 29
Abstractor: As Provided
Reference Count: 18
ISSN: ISSN-0897-5930
An International Capital Budgeting Experiential Exercise
Manuel, Tim; Tangedahl, Lee
Journal of Teaching in International Business, v20 n1 p35-63 2009
This article describes an experiential exercise that uses a brief simulation model intended to introduce undergraduate international finance students to the complexities in corporate investments in foreign countries. Use of the model requires one or preferably two class periods. Student learning goals include: (a) understanding how different patterns of deviations from purchasing power parity can alter an international capital investment's profitability in dollars, (b) evaluating the tradeoffs of different financing options under violations of interest rate parity, (c) promoting discussion of ethical considerations in international investments by asking the student to decide whether to engage in local infrastructure investments and facilitation payments, and (d) gain experience in foreign investing under uncertain conditions. (Contains 5 figures, 1 table and 19 endnotes.)
Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A