Module Note | March 2006

Financing Decisions within the Firm

by Mihir A. Desai and Kathleen Luchs

Abstract

Describes a core module in the International Finance course at Harvard Business School. The module focuses on the financial and managerial issues that confront managers who make financial decisions within multinational firms: how subsidiaries should be financed and owned, how repatriations should be conducted, how different tax regimes influence financial decisions, and how firms can measure and compare the performance of businesses and managers in different countries. The module note provides instructors with an overview of the module, the cases, and the teaching notes and explains how this module fits into the overall International Finance course. Includes a brief description of the framework developed in the course and explains the application of this framework to the cases in this module. Also, includes descriptions of the three cases in the module and the analysis required in each case; an explanation of the learning objectives and suggested assignment questions for the cases; and information on additional materials useful in teaching the cases. Concludes with references to relevant academic literature and a bibliography.

Keywords: Decisions; International Finance; Taxation; Business Subsidiaries; Multinational Firms and Management; Framework; Performance Evaluation; Management Analysis, Tools, and Techniques;

Citation:

Desai, Mihir A., and Kathleen Luchs. "Financing Decisions within the Firm." Harvard Business School Module Note 206-124, March 2006.