Module Note | March 2006

Exchange Rates and Global Markets

by Mihir A. Desai and Kathleen Luchs

Abstract

Describes the first module of the International Finance course at Harvard Business School. This introductory module focuses on the concepts and skills that students need throughout a course on international finance: a familiarity with exchange rates and associated instruments; an understanding of the economics of exchange rates; and how the CAPM translates into an international setting. These concepts are usually taught only through textbooks, so the case studies in this module offer an innovative approach to teaching this material. The note provides instructors with an overview of the module, the cases, and the teaching notes. Includes descriptions of the three cases in the module and of the analytic exercise embedded 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: Asset Pricing; Currency Exchange Rate; Globalized Markets and Industries; International Finance; Teaching; Innovation and Invention; Education Industry;

Citation:

Desai, Mihir A., and Kathleen Luchs. "Exchange Rates and Global Markets." Harvard Business School Module Note 206-122, March 2006.