Introductory description

NA

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

History and background of the development of the international monetary system.
The market for foreign exchange.
International parity relations and forecasting exchange rates.
International money, equity and bond markets.
Currency forwards and futures markets, swap markets and options markets.
Managing economic, transaction and translation exposure.
International portfolio investment.
Foreign direct investment.
International capital budgeting.
International taxation.

Learning outcomes

By the end of the module, students should be able to:

• To extend students’ knowledge and understanding of the theory of corporate financial management to include firms that operate in an international context.
• To develop students’ critical reasoning skills in the context of international financial risk management.
• To equip students with the practical skills required of financial managers in international companies.

Indicative reading list

Shapiro A.C. Multinational Financial Management (7th edition) Wiley 2003
Eun C.S. and Resnick B.G. International Financial Management (3rd edition) McGraw-Hill 2004
Eiteman, D.K., Stonehill A.I. and Moffett M.H. Multinational Business Finance (10th edition) Pearson Addison Wesley 2004
Buckley A. Multinational Finance (5th edition) FT Prentice Hall 2004
Sercu, P. and Uppal, R. International Financial Markets and the Firm, South Western 1995.

Subject specific skills

Be able to propose strategies that enable companies with international operations to mitigate their business and financial risks.

Be able to appraise international capital projects.

Be able to value the target company in an international merger or acquisition.

Be able to communicate the results of their analysis of case-studies involving firms whose businesses involve the import / export of goods and/or services, and/or direct foreign investment, in a volatile international economic environment.

Transferable skills

Understanding of commonly used empirical and econometrics tools in
international finance; ability to analyse data.

Oral communication skills to discuss policy relevant questions in seminar
discussions