Session 7 - Topic 1. Financing International Operations. Prada

Read the case study “Does the Devil Really Wear Prada?” DRS pp. 392 - 395.

Based on the required readings and the case study discuss:

· Do you agree with the decision to list an IPO or should Prada consider other financing options? What are the pros/cons of such options?

· Are there any downsides to Prada’s decision to list in Hong Kong?

· What types of foreign exchange risk does Prada face?

· What advice would you give them to hedge against their risks?

1.5 page response is the Maximum for ALL topics.

Session 7 - Topic 2. Foreign Exchange & Accounting issues: El Salvador, Parmalat

Topic 2. Foreign Exchange, Accounting Issues Case Studies: El Salvador & Parmalat

Two topics have been created. Respond as indicated below:

2A. El Salvador: Individuals whose surnames begin with the letters A-M, respond to Questions 9-1, 9-2, p. 332.

Session 7 - Topic 3. Lessons Learned

Based on your discussion of the Prada, El Salvador and Parmalat cases, the videos, and course readings, discuss the broader lessons for international business and the managerial implications. What advice would you give to the company your team selected to study for Team Report #2?

Respond to all topics in Session 7 Discussions. Start your discussion by midnight Saturday latest! Respond to at least two of your classmates’ comments. Complete your postings by Tuesday midnight latest!

As part of your Discussions participation, post one news source as a response to this Main Topic and explain briefly (3 or 4 sentences will do) how the news story bears on the topics for the week or for upcoming weeks. Avoid news items that are older than 2 months.

Make sure that you use foreign media!

See Session 1 Discussions for a list of resources.