International Finance

COURSE DESCRIPTION :
The course is a study of the global financial environment from the point of view of the multinational enterprise. The course covers the global financial environment, foreign exchange theory and markets, foreign exchange exposure and the financing of the global firm. With the rapid globalization of the world economy, the managers of a firm have to understand that their decisions will be greatly influenced by variables such as exchange rate policies, trade policies, international accounting standards, etc. The goal of this course is to help students understand how the managers of a firm function in this increasingly uncertain environment. This course will focus on four main areas of international finance: (1) key economic theories, (2) financial instruments for risk management, (3) exchange risk management, and (4) international financing and investment issues

INSTRUCTIONAL METHODOLOGY :
The course consists of class lectures, individual/group case analysis presentations and tests. Will be covered in class :
- Corporate ownership and international financial challenges
- International monetary system
- Balance of Payments
- Foreign currency markets
- International parity conditions, pass-through
- Currency derivatives
- Interest rate risk and hedging
- Transaction, operational and translation exposure and hedging
- Raising debt and equity in international markets

TEXTBOOK:
Eiteman/Stonehill/Moffett, Multinational Business Finance

EVALUATION:
The final grade will be made up of a class participation (20%), 2 mid-terms (25% each), a final examination (40%).