International Finance

Universidad Carlos III de Madrid

Course Description

  • Course Name

    International Finance

  • Host University

    Universidad Carlos III de Madrid

  • Location

    Madrid, Spain

  • Area of Study

    Finance, International Studies, International Trade

  • 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

    International Finance
    Bachelor in International Studies
    ECTS Credits: 6.0
    Course: 3
    Semester: 1

    COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS

    This course introduces the student to International Finances. 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.

    DESCRIPTION OF CONTENTS: PROGRAMME

    This is an advanced class on international politics in which several topics with practical examples will be presented, discussed and analyzed from a political science point of view, but integrating of with views of adjacent fields in social sciences and humanities.

    The objective of the course is to provide students with adequate instruments for the theoretical and empirical analysis of structures, processes and outcomes in international politics, integrating the national and the international level, and therefore such cases will be studied in great depth, and the standard analytical instruments of political science to study them will be trained and contrasted with the methodologies of adjacent fields.

    This includes practical research by the students themselves: engagement with existing literature and results, formulating research questions, hypotheses, gathering empirical information, sorting it, analyzing and interpreting it. Presentation and discussion of results in oral and written form.

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

    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

Course Disclaimer

Courses and course hours of instruction are subject to change.

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.