FIN6290
International Finance
This course focuses on the scope and content of international finance as a fast-evolving field due to the deregulation of financial markets, product innovations, and technological advancements. As capital markets of the world are becoming more integrated, a solid understanding of international finance has become essential for effective corporate decision-making and risk management. Three major areas distinguish international financial management from domestic corporate finance and become the core focus of this course, namely, (i) foreign exchange and political risks, (ii) market imperfections, and (iii) expanded opportunity set. Students will be introduced to international finance by means of looking at how firms and governments inter-react with these markets. The course will emphasize the link between theory and applications. The course is streamlined to benefit students who have aspirations in careers such as general management, financial analysis, commercial and investment banking, and consulting, among others.
PREREQUISITES: BUS4113
UPON COMPLETION OF THE COURSE, THE STUDENT WILL BE COMPETENT IN:
- Understanding fundamental aspects of multinational financial management.
- Analyzing international financial markets in order to critically evaluate the financial, investment and operating activities of various industries.
- Analyzing and evaluating the interconnectedness of global financial dynamics.
- Understanding concepts of exchange rate risk management for a multinational enterprise.
- Applying relevant tools of exchange rate risk management to maximize financial decisions in a risk/return environment as related to global business.
- Analyzing exchange rate behavior and the equilibrium theories.
- Demonstrating an understanding of mechanisms and functions of the international financial environment.
- Evaluating and determining basic arbitrage opportunities in international exchange markets.
- Demonstrating an understanding of foundational components of political risk in emerging and developed markets.
- Understanding financial measurement techniques to determine international flow of funds and their impacts upon markets.
- Applying relevant and ethical assumptions and estimates in international financial management policies and decisions.
- Analyzing and evaluating basic currency derivatives.
- Analyzing and evaluating international arbitrage and interest rate parity.
- Understanding governmental influence on exchange rates, inflation, and imports/exports.
- Evaluating the relationship among inflation, interest rates and exchange rates.
- Analyzing the management of economic exposure and translation exposure.
- Analyzing and Evaluating Direct Foreign Investment and Country risk analysis.
- Analyzing and evaluating Multinational capital structure and cost of capital.