Groupe Schneider is a world leader in electrical distribution, industrial engineering equipment, and industrial control and automation. To promote a stronger value creating culture, Schneider implemented a performance measurement system based on Economic Value Added.

Daewoo Group companies run a distant third or fourth in their respective industries in Korea, but they are rapidly expanding their presence, mainly through acquisitions, in foreign markets. In this context, Daewoo Electronics makes a bid in 1996 for the heavily indebted French electronics manufacturer Thomson Multimedia, which is being privatised.

In February 1996, Merton Electronics was reviewing its currency risk position. Its principal foreign suppliers were Japanese and fluctuations of the dollar/yen exchange rate during the past 2-3 years seemed to have had a serious impact on costs and earnings.

This is a case study on foreign borrowing alternatives.