Case Study Instructions and Guidelines

Appendix A: Samples of Cases These are synopses of case studies which are used to help the students achieve the Course Objectives: Huaneng Power International, Inc.: Raising Capital in Global Markets Stephen R. Foerster, Andrew Karolyi, Jerry White It is early October 1994, and Huaneng Power International (HPI), an independent power producer in the People's Republic of China (PRC), is in the process of executing a global equity issue to raise funds for the construction of new power plants. The company is planning to list the new shares through an American Depositary Receipt program on the New York Stock Exchange. The company has recently reduced the price of the issue due to poor market conditions and investor resistance to the price range stated in the preliminary prospectus. The student must decide, as HPI management, whether the new offer price and choice of listing exchange is reasonable in light of recent market events and the political, economic, social, and technological environment in the PRC. Innocents Abroad: Currencies and International Stock Returns Mihir A. Desai, Kathleen Luchs, Mark F. Veblen What do international stocks contribute to the portfolio of a U.S. investor? How do currencies interact with stock price movements in determining the benefits of international diversification? This case helps students compare the risks and returns of foreign stock markets with each other and with the U.S. market and to examine the risks and returns of international diversification. Students must calculate returns, adjust for currencies, derive correlations, and map efficient frontiers based on raw data. Launch of Durra: Women in Islamic Banking Alexandra Roth, David T.A. Wesley The case focuses on the vice-president and regional head of corporate banking for Noor Islamic Bank in Dubai as she arrives in the United States to promote the first global network for women in Islamic banking and finance, known as Durra. The case introduces students to the concepts behind Islamic banking and the reasons why certain types of risky financial products are not permitted under Islamic law. As a result, Islamic banks have been growing at a rate of 15 per cent per year, and have assets approaching $1 trillion, despite the recent banking crisis. Islamic banks also have a hard time filling the 30,000 new jobs created each year because of the specialized training required. One of the purposes of Durra is to help more women fill critical positions in Islamic banking and to help them manage their careers in order to assume leadership positions. The case also raises questions about how best to build a non-profit organization. Issues include how to attract new members and financial backers and how to build a useful and robust website that fulfills the needs of the organization. Citibank N.A in China This case deals with the decision of how to structure an overseas operation and how this decision is affected by a number of variables which among others include the bank internal resources and experience, tax considerations, and most importantly the host country’s banking laws. Students are asked to develop a strategy to retain the bank’s “first mover” in China and to establish a dominant position in this market. Royal Bank of Canada in Thailand

The purpose of this case is to demonstrate the challenge of doing business in emerging markets. The case emphasizes the long term commitment that is required, despite the instability inherent in heady markets. Among other requirements, students need to prepare a detailed recommendation to senior management supporting a decision to stay in the country or to pull out. This decision needs to take into consideration the sensitivities and reaction of the authorities in Thailand to a pull out. Conflict on Trading Floor Ethics is the major theme of this case. Students are required to understand all the details of the financing of a cruise ship, that involves the use of loan, foreign exchange and derivatives products in order to In order to pass judgment in a highly profitable bank transaction that could be construed as fraud. Banc Zero: New Product Development This case deals with the difficulties involved in developing derivate products for subsidiaries of multinationals, located in developing countries, using bank’s pricing and valuation models originally created for developed countries. Students are asked to approved or disapprove a new currency swap product and provide suggestions to improve the bank’s processing and approval of new products guided to local markets. Citibank Mexico: The Salinas Accounts This case is based on a client of the Citibank Private Bank that was accused of murder, illegal enrichment and laundering money for the Mexican drug cartel. Illustrates the difficulties of obtaining information at the international level and the importance of developing and following a comprehensive anti money laundering and compliance process. Students break into groups to play the role of bank auditors, Swiss authorities and US authorities. To encourage competitiveness, a best team is selected. Chase’s Strategy for Syndicating the Hong Kong Disneyland Project Loan This case provide students with the opportunity to learn the process of international syndicate lending as applied to project finance, using the Walt Disney Company and Hong Kong Government’s agreement to develop Hong Kong Disneyland, HK $ 28 billion theme park. Students with learn the complexities of a large financial transaction denominated in various currencies involving financial institutions located in various countries, and government and corporate’ s political pressure to select participating banks. Among other requirements, students are required to prepare a scale back of commitments for participating banks (foreign and local) that takes into consideration local sensitivities. To encourage competitiveness a best team is selected