International Financial Management
J. Markham Collins, PhD
CASES:
Harvard Business Cases can be purchased through Harvard Business Online:
http://cb.hbsp.harvard.edu/cb/access/7693896
Do not purchase the “Porsche Changes Tack” case yet.
The Ivey Business Case can be purchased through the Ivey website:
http://cases.ivey.uwo.ca/Cases/Pages/home.aspx?Mode=showproduct&prod=9A89G007
I. Introduction to the International Monetary System
Book Chapters:
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
Appleyard et al. (2010) – Chapter 20, pp. 476-506
Eun & Resnick (2009) – Chapter 2, pp. 25-59
II. Fixed and Floating Exchange Rates
Book Chapters:

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Appleyard, Chapter 20, pp. 476-506 & Chapter 28, pp. 713-738
Shapiro (2010). Chapter 2, pp. 57-98
Eun & Resnick (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
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International Financial Management | The University of Tulsa

Appleyard, Chapter 29, pp. 739-774
Readings:
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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
Eun & Resnick, 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
Eun & Resnick, Chapter 9, pp. 221-241
Readings:


Collins (2010)
Choi, J., & Jiang, C. (2009)
Case Studies:
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Lufthansa: To Hedge or Not to Hedge
Waterside Furniture Company
Porsche Exposed
Porsche Changes Tack
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International Financial Management | The University of Tulsa
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
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International Financial Management | The University of Tulsa
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, p437466, 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, p219235, 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
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International Financial Management | The University of Tulsa
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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International Financial Management | The University of Tulsa