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After a few phone calls to Brazil and discussions with financial officers of other multinational corporations operating under similar conditions, several options to meet the financing needs of Morris de Minas had emerged. In order to make his task easier, Albuquerque divided the alternatives into those not involving exchange risk and those doing so. Two options, a Eurodollar loan to Morris de Minas and the establishment of a financing subsidiary, fell into the latter category, while another, a back-to-back loan, bore only partial exchange risk. Albuquerque thought he should begin with two widely used financing techniques that involved no foreign exchange risk.
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