BUU44640 International Finance
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BUU22550 - Introduction to Finance
The course examines the global financial environment. As the international company becomes the norm rather than the exception, the need to internationalise the tools of financial analysis is critical. The objective of this module is to provide a conceptual framework within which the key financial decisions of the multinational firm can be analysed. We now live in a highly integrated world economy, and it is crucial that businesses understand both the risks and opportunities that globalisation brings.
This course covers exchange rate systems and international financial markets, and details the theory and evidence on exchange rate determination. It also focuses on foreign exchange risk management, corporate governance practises across the globe, foreign investments and investment analysis in particular portfolio investment and cross-border acquisitions.
Learning and Teaching Approach:
This module is structured around a series of lectures, questions and readings. Students will be expected to prepare homework in advance of and to contribute to discussions in class.
Having completed this module, students should be able to:
- Evaluate corporate governance systems around the globe.
- Understand the evolution of the current international monetary systems and the role of the main international financial institutions.
- Critically appraise the extent to which the theories of exchange rate determination explain exchange rate movements in today's globalised economy.
- Compare, contrast and evaluate the main parity relationships in international finance.
- Understand the role of derivative instruments in managing international financial risk, and evaluate alternative approaches to international financial risk management within the firm.
- Examine foreign direct investment strategies and appraise the benefits of international portfolio investment vis-a-vis domestic-only diversification.
Textbook and Readings:
Eiteman, D.K., Stonehill, A.I., & Moffett, M.H. (2016) Multinational Business Finance, (14th ed. Global Edition). Pearson Education. ISBN: 9781292097879
(Any recent edition will suffice)
General Supplemental Readings:
Additional readings will also be assigned throughout the course and will be posted on Blackboard.
Assessment for this course will be as follows:
- International Finance Project (Group) – 30%
- Final Examination (Individual) – 70%