International Finance & Banking may be thought of as an extension to domestic financial operations. International Finance extends not only the opportunity set for firms, but also their risk framework. The course will explore the workings of international financial markets and how firms may take advantage of those opportunities while minimizing risks at the same time.
Firms operating internationally face the same task as domestically focused firms: how to make the best decisions to maximize the firm’s value. The boils down to the challenge of maximizing free cash flows over the long-term.
The course will include a review of:
- Origin of Money and monetary policy conducted by Central Banks
- Global capital markets vs commercial lending markets
- Different currency regimes
- Interest rate risk
- Currency risk
- Present day
Learning Outcomes:
- Appreciate the International financial environment encountered by firms
- Determine a country’s risk profile for business operations
- Evaluate international business methods
- Use different tools to hedge interest rate risk
- Use different tools to hedge currency risk
- Develop a risk framework for firms operating globally
