International Financing

Universidad Carlos III de Madrid

Course Description

  • Course Name

    International Financing

  • Host University

    Universidad Carlos III de Madrid

  • Location

    Madrid, Spain

  • Area of Study

    Accounting, Business, Business Administration, Business Management, Economics, Finance, Financial Management

  • Language Level

    Taught In English

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • ECTS Credits

    6
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS.
    This course introduces the student to International Financial Management. The course focuses on decision making in an international context and how financing and investment decisions change when a firm operates in more than one country. The course explores the international financial markets and currency parity conditions, including the relationship between spot and forward exchange rates, interest rates, and inflation rates. The course will also cover the role of derivatives in hedging risk in the international capital markets, as well as, the assessment and valuation of foreign investments.

    After this course the student should be able to:

    -Have a better understanding of the role of International Financial Management in a modern corporation
    -Understand the accounting and risk issues raised by foreign operations
    -Asses the role of financial derivatives to hedge risk in the international markets
    -Analyse investment decisions in an international context

    Methodology
    The approach of the course is to treat International Financial Management as a natural and logical extension of the foundations and principles learn in Financial Management. Thus, it builds on and extends the valuation framework (NPV, IRR, Risk Divesification, Derivatives, etc.) learn in domestic Corporate Finance, whose previous basic knowledge will be an advantage during the course
    The methodology of the course includes both a general framework for analyzing international financial issues, understanding market data and the use some specific quantitative simulators. The course highlights both theory and applications. Extensive use of cases and investment tools, presents the student with a challenging and real-life environment in which to apply decision-making skills in an international context.

    ASSESSMENT SYSTEM
    1. Attendance and Class Participation.
    a. Class participation, Homework, Case Discussion and/or Forex Simulator 20%.
    2. Midterm exam: 20%
    3. Final Exam: 60%.

    % end-of-term-examination: 60
    % of continuous assessment (assigments, laboratory, practicals?): 40

    BASIC BIBLIOGRAPHY
    - Eiteman, D. Stonehill A. I. y Moffet M. H Multinational Business Finance 12th edition, Pearson, 2011
    - Shapiro, A. C Multinational Financial Management; 10th. edition, John Wiley & Sons, Inc., 2013

    ADITIONAL BIBLIOGRAPHY
    - Brealey, R.A. Myers, S.C. y Allen, F. Principles of Corporate Finance, 9th edition, Chapter 28, McGraw-Hill, 2008

Course Disclaimer

Please note that there are no beginning level Spanish courses offered in this program.

Courses and course hours of instruction are subject to change.

Eligibility for courses may be subject to a placement exam and/or pre-requisites.

Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.

ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.

Please reference fall and spring course lists as not all courses are taught during both semesters.

Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations

Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.