New Plant for Houston Marine Electronics: International Finance Case on International Capital Budgeting

10 Pages Posted: 12 Jul 2013 Last revised: 29 Jun 2017

See all articles by Thomas J. O'Brien

Thomas J. O'Brien

University of Connecticut - Department of Finance

Date Written: March 28, 2017

Abstract

Houston Marine Electronics is a hypothetical United States manufacturer needing to decide in 2013 whether to build a new plant to supply surging product demand in Australia. If so, the company must also decide whether to locate the plant in the United States or Australia. The case focuses on issues related to country risk, currency risk, and the cost of capital.

Keywords: Foreign Exchange, International Capital Budgeting, Cost of Capital, Country Risk, Operational Hedging

JEL Classification: G31, G32

Suggested Citation

O'Brien, Thomas J., New Plant for Houston Marine Electronics: International Finance Case on International Capital Budgeting (March 28, 2017). Available at SSRN: https://ssrn.com/abstract=2292703 or http://dx.doi.org/10.2139/ssrn.2292703

Thomas J. O'Brien (Contact Author)

University of Connecticut - Department of Finance ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States
860-486-3041 (Phone)
860-486-0634 (Fax)

HOME PAGE: http://www.business.uconn.edu/staff.asp?id=57

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