Become acquainted with the standard valuation approaches used for cross-border transactions; forecast future spot exchange rates, convert future cash flows denominated in a foreign currency to equivalent cash flows in the domestic currency, and use a domestic currency discount rate to value the cash flows; and convert a domestic discount rate to a foreign currency discount rate based on interest differentials, use this foreign rate to discount foreign currency cash flows, and convert the resulting foreign currency value to dollars at the current spot rate. The case also allows students to develop the skills needed to address political risks and understand how those risks affect a valuation.