International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
BONUS ACTIVITIES (additional resources not in the text)
This section provides you with support of your course above and beyond what’s found in the
text. We have developed these resources to support your course, to support your traditional,
hybrid, online, flipped class.
VIDEO SUGGESTIONS
McGraw Hill’s collection of international business videos is available on pinterest at
https://pinterest.com/mheibvideos . The FX board is rich and varied, updated monthly, as is the
Financial Management board. McGraw Hill’s Pinterest collection is a great resource. See the PBS
report on currency issues between China and the U.S.
https://www.youtube.com/watch?v=9hKel8DeM2o for an American introducing Chinese to
American Slang.
See the U.S. State Department’s resources on business at http://www.state.gov/. These
resources are rich and include commercial guides to countries by business sector, sound under
the business tab.
The Economist has many interesting global finance videos on youtube. One that is especially
good focuses on 5 years after the global crisis of 2008. See
http://www.economist.com/news/leaders/21584975-five-years-after-maelstrom-september-
2008-global-finance-safer-still-not-safe.
The Financial Times also has good finance videos on youtube.
TEAM EXERCISES
These may be done individually or in groups or teams, either in or out of class, for later class
presentation. Some are also appropriate for hybrid and online courses.
1. Deloitte Touche Tohmatsu hosts an International Accounting Standards (IAS) webpage that
provides information and guidelines regarding accounting guidelines approved by IASC,
/www.IASplus/. Ask small groups of students (5 or so) to go to the section on standards and
prepare a short description of the international accounting standards for specific activities, such
as recording intangible assets, recording tangible assets, depreciation, FX translation rates, etc.
This assignment could be shared online in a chatroom or using a collaboration tool. It could also
be presented in a face–to–face class.
2. Deloitte Touche Tohmatsu also has a resource that provides information on the investment
climate, operating conditions, and tax systems of the major trading countries, available at
http://www.deloitte.com/taxguides/. Assign small groups to research a specific country had
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
3. Have students research of the various capital markets of the world, the differences,
advantages and disadvantages of each. Have them track market movements for two weeks and
report on factors that may have caused these changes. Then ask them to discuss the question,
“Do changes in one market affect the others? Why or why not?” This can be done in small
groups with report-backs that work within your course delivery mode.
SUPPLEMENTAL ACTIVITIES
CASE STUDIES
Case studies that focus on international financial and accounting issues are available through
Ivey Publishing and Harvard Business School. Ivey’s catalog is available for browsing
(www. iveycases.com); the cases are downloadable for review, and pricing is in the U.S. $3.50 +
range. Harvard Business Publishing (https://cb.hbsp.harvard.edu/cbmp/pages/home) offers
downloadable review copies for educators. The case prices begin in the $6 range.
“International Investor: Islamic Finance and the Equate Project” looks at a union Carbide–
Petrochemical Industries petrochemical plant project in Kuwait. It gives students the
opportunity to think about an Islamic finance project. This is an Ivey case.
“Olam International: Financial Accounting and Disclosure” investigates a British challenge to
this Singaporean company’s reporting. The challenge, made by the founder of Muddy Waters,
led to a stock price decline and was regarded critically. This case reviews the episode, including
Olam’s response to the challenge. It is an ABCC, Nanyang Tech University case available through
Harvard. There is a series of Olam cases, including the building of a supply chain in the Ivory
Coast.
“Can the Eurozone Survive?” focuses on the sovereign debt crisis that began in Europe with
Greece in 2010. This is a Harvard case and as of this writing is timely.
“U.S. Current Account Deficit” delves into the U.S. balance of payments issues. It studies the
drivers of the widening U.S. current account deficit and the effects of an adjustment on the
world economy and business environment. There is widespread uncertainty about what this
deficit means. This is a Harvard case.
CONTROVERSIAL ISSUES
1. U.S. Currrent Account Deficit: a Concern or Not?
2. Current events for sources of controversy in finance and accounting
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
TEACHING SUGGESTIONS
1. This chapter is very important to students’ understanding of the importance of finance and
accounting in international business. They are fundamental issues for international managers.
These topics tend to unnerve students who lack confidence in their quantitative skills. To address
this issue, you might focus on the logic and goals of the specific techniques and from there move
to application
2. From an international perspective, accounting is in a state of flux. By focusing on this
situation, you can help your students understand that globalization calls for new ways of
thinking and collaborating.
3. When an IC has a subsidiary in a country that imposes currency exchange controls, the
subsidiary may not be able to remit its profits to the parent. Have your students make a list of
uses to which that trapped money may be put. Reinvestment, barter, participation in local
money markets are all possibilities, among others.
4. Focusing on the boxed material and the case study will help students achieve the objectives
of the chapter. Answers for both the boxed material and case studies are provided in this
Instructor’s Manual.
5. The “Check Your Progress” section in the textbook will help in understanding chapter
content, and Connect offers a way to hold them accountable. These topics may be assigned as
an outside class assignment. One of the problems in giving textbook questions as outside
assignments is that students frequently do not do the assignments and wait for the instructor to
give them the answers. Instructors can avoid these problems in several ways: (1) collect
assignments at random and assign a grade; (2) occasionally give some of the same questions as a
quiz, thus rewarding students who have done their assignments; (3) have students hand in
assignments and give credit for work submitted (or penalties for work not submitted); and (4)
call on students at random to present on specific questions (giving a small number of points for
correct answers or counting this as part of participation, while being unable to deliver earns a 0
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
22 Instructor’s Manual – Module 15| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
4. Guest lecturers on finance and accounting are a way to underscore the importance of the
information in this module. Possible guests include
• International department officers of banks could speak on hedges and swaps, also
on the role of banks as capital sources for ICs.
• Accountants may be found to speak on translation risks and other international
accounting issues.
• Someone from the financial department from a company that faces transaction risks
should be interesting. The same speaker could speak to capital sourcing.
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
23 Instructor’s Manual – Module 15| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
CONNECT TOOL S FOR ASSESSEMENT OF LEARNING
Interactive Applications
Assigning Interactives
Consider assigning only 2 interactives per chapter. Interactive applications allow students to see
concepts in practice and assess higher order thinking skills. There are numerous exercises of
different types available. Click’n’drag, video cases, and case analysis are the types you will see
most frequently in this program.
Time-Saving Hints:
• Instructors may want to give students unlimited or multiple attempts on the first few
assignments so the students have a chance to learn and navigate the system before
selecting the option for one attempt only.
• The value of each question should probably be relatively low, since multiple questions
are usually assigned for each chapter. A good rule of thumb would be to make “Quiz
Questions” worth 1 point each and “Interactives” worth 5-10 points each since these
require more time and thought.
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
24 Instructor’s Manual – Module 15| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
• Feedback given to students is time flexible. Selecting feedback to be displayed after the
assignment due date helps to limit students from giving the correct answers to other
students while the interactive is still available.
Connect Content Matrix
For every chapter, please refer to the Connect Content Matrix to see what application
exercises are available, what Learning Objectives they help reinforce/assess.
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
25 Instructor’s Manual – Module 15| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
Module
Title
Topic(s)
Learning
Objective(s)
AACSB
Accreditation
Tagging
Bloom’s
Taxonomy
15
Functional
Currency and
Translation
Methods
Accounting
and Foreign
Currency
15–01
Reflective
thinking
Understand
15
International
Accounting
and Culture
Accounting
and Foreign
Currency/
Triple Bottom
Line
Accounting
15-1; 15-02
Analytical/
Reflective
thinking
Understand/
Analyze
15
Taxation and
Outsourcing
International
Financial
Management
15–03
Analytical/
Reflective
thinking
Understand/
Analyze
15
Managing
Foreign
Exchange
Risks
Foreign
Exchange Risk
Management
15–05
Reflective
thinking
Understand
15
Cash Flow
Management
International
Financial
Management:
Cash Flow
Management
15-04; 15-
05;
Analytical
Understand
Module
Title
Topic(s)
Learning
Objective(s)
AACSB
Accreditation
Tagging
Bloom’s
Taxonomy
15
Functional
Currency and
Translation
Methods
Accounting
and Foreign
Currency
15–01
Reflective
thinking
Understand
15
International
Accounting
and Culture
Accounting
and Foreign
Currency/
Triple Bottom
Line
Accounting
15-1; 15-02
Analytical/
Reflective
thinking
Understand/
Analyze
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 15
26 Instructor’s Manual – Module 15| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
15
Taxation and
Outsourcing
International
Financial
Management
15–03
Analytical/
Reflective
thinking
Understand/
Analyze
15
Managing
Foreign
Exchange
Risks
Foreign
Exchange Risk
Management
15–05
Reflective
thinking
Understand
15
Cash Flow
Management
International
Financial
Management:
Cash Flow
Management
15-04; 15-
05;
Analytical
Understand