This document provides an introduction and expectations for a course on global finance and entrepreneurship taught by Brian Butler. It introduces Butler's background and qualifications, lists required readings and textbooks, and outlines expectations for the course including attending lectures, completing assignments, and participating in discussions and group work. The document also includes sample discussion questions on currencies and currency exchange rates related to countries like the US, UK, Eurozone, Switzerland, and others.

1. Forum-Nexus Welcome to Switzerland!!

2. Brian David Butler Professor of international finance and global entrepreneurship with Forum-Nexus Study Abroad. Guest lecturer with the IQS Business School of the Ramon Llull University in Barcelona, and the Catholic University of Milan . Previously, Brian taught finance, economics and global trade courses at Thunderbird’s Global MBA program in Miami, and worked as a research analyst with the Columbia Business School in New York City. Brian currently lives in Recife, Brazil where he is teaching classes on “Global Entrepreneurship” at the university FBV. A global citizen, Brian was born in Canada, raised in Switzerland (where he attended international British school), educated through university in the U.S., started his career with a Japanese company, moved to New York to work as an analyst, married a Brazilian, and has traveled extensively in Latin America, Asia, Europe and North America. [email_address] LinkedIn/briandbutler Skype: briandbutler

11. Question: over the past year, has it become “more expensive” or “cheaper” to travel to Europe? Approx $1.2 / euro Approx $1.45 / euro

12. How about for British? Has it become more or less expensive to travel to the Eurozone? 1 pound buys 1.1 euros 1 pound buys 1.5 euros

13. Also more expensive (be careful of inverted graph!!) 1 pound buys 1.1 euros 1 pound buys 1.5 euros

14. Question…. So, are British EXPORTS more, or less competitive? (since the crisis began)

15. 1 euro buys 0.70 pounds 1 euro buys 0.90 pounds

16. Eurozone consumers can BUY more British goods for less euros: 1 euro buys 0.70 pounds 1 euro buys 0.90 pounds

17. Question. Has Britain benefited from having a FLOATING CURRENCY during the crisis? (not being in the Euro-zone)?

18. Yes!

19. How does this compare with Spain, Greece? Should Spain / Greece drop out of the Euro (to regain competitiveness)? (think about this as you answer your team projects)

21. Q. What do you notice that is unique about Switzerland? http://www.nationsonline.org/oneworld/switzerland.htm

24. Swiss franc appreciates during crisis http://finance.yahoo.com/q/bc?t=5y&s=EURCHF%3DX&l=on&z=l&q=l&c=eurusd%3Dx Question: does Switzerland get more expensive? Or less?

28. Euro = stronger vs. US dollar http://finance.yahoo.com/q/bc?t=5y&s=EURCHF%3DX&l=on&z=l&q=l&c=eurusd%3Dx Euro = weaker vs. Swiss Franc

30. How does this compare with Spain, Greece? Should Spain / Greece drop out of the Euro (to regain competitiveness)? (think about this as you answer your team projects)

32. 5 year Crisis Oct 2008 US Dec ‘09 – May ‘10 Greece crisis builds Concerns about USD debt Rush to “safety” of US Treasuries Question: can you predict the future exchange rate?

34. Structure of the U.S. Foreign Exchange Market Adapted from St. Louis Fed Review (March 1984) p. 9, by Robert Grosse Stockbrokers CLIENT with $US who wants to buy euros Local Bank Stockbrokers C M E (I M M) P S X Foreign Exchange Brokers CLIENT with euros who wants to buy $US Local Bank NEW YORK INTERBANK MARKET CHIPS

35. 1. US Exporters US Importers Paying in £ 2. British Direct Investors US Direct Investors in the UK 3. US Foreign Investors Remitting Profits British Foreign Investors in the US Remitting Their Profits 4. British Portfolio Investors US Portfolio Investors in the UK 5. Bear Speculators Bull Speculators 6. Arbitrageurs 7. Government “interveners” The Foreign Exchange Market for £ In New York Suppliers of Pounds Demanders for Pounds P $/£ XR 0 pounds Q eq Q S £ D £

36. The World’s Money Flows Daily Currency Market Turnover ($billion) Net of Local Double-Counting; No Adjustment for Cross-Border Double-Counting Source: BIS

38. Daily Global Foreign Exchange Market Turnover* by Market Segment, April 1989 – April 2007 *Adjusted for local and cross-border inter-dealer double-counting ($ billion) 590 820 1190 1490 1210 1880 3210

40. New problem… break in to teams of 2

44. 5 year Crisis Oct 2008 US Dec ‘09 – May ‘10 Greece crisis builds Concerns about USD debt Rush to “safety” of US Treasuries Question: can you predict the future exchange rate?