Public key crypto without modular arithmetic?
Breaking such a scheme is easy. 

Suppose Alice wants to transmit a message $M$ to Bob. First thing, Alice picks an integer $R_a$ and sends the cipher text $C_a = M \times R_a$ to Bob. Bob then picks another integer $R_b$ and transmits $C_b = C_a \times R_b$ back to Alice. Alice calculates $D_a = \frac{C_b}{R_a}$ and sends $D_a$ to Bob. Bob calculates $D_b = \frac{D_a}{R_b}$ and clearly $D_b = M$.

Now, Eve intercepts the messages $C_a, C_b, D_a$ and might easily calculate $R_a = \frac{C_b}{D_a}$ and consequently $M = \frac{C_a}{R_a}$. Eve is clearly not supposed to be able to do this, so this constitutes a break.

Furthermore, it doesn't really matter if the multiplication is done in a finite group or not. In a group, division would be defined as multiplication with the inverse element of the divisor, e.g. $D_a = {C_b} \times {R_a}^{-1}$. Eve would still be able to calculate $M$.