This course can be thought of as an extension of domestic financial operations, and as such there is no objective conflict between domestic and international finance. They are both concerned with how to make the best decision to maximize value for firms. The key concept is cash flow, which for a multinational corporation is exposed to changes in exchange rates, in interest rates, and of the foreign economic and political conditions. In this course we will investigate the;
- International financial environment and the exchange rate
- Exchange rate risk management
- Foreign investment decisions and financial risk management
- Trade and short-term financing
Learning Outcomes:
Upon completion of this course, the student will be able to:
- Understand the international financial environment and its impact on managerial decision-making
- Be familiar with the foreign exchange market and able to use foreign currency options for hedging
- Demonstrate a working knowledge of measuring and managing foreign exchange exposure (transaction, operating, and interest rate exposure)
- Understand the firm’s cost of capital and its capital structure in an international environment
