International Finance (2 Credits)

Learning Outcomes:

On successful completion of this course, student will be able to: LO1 – Define the fundamentals of international financial management including the international flow of funds, the role of international financial markets, and the mechanics of exchange rate determination and currency derivatives; LO2 – Outline the influence of government policies on exchange rates, the dynamics between inflation, interest rates, and exchange rates, and the principles of international arbitrage and interest rate parity; LO3 – Employ knowledge to forecast exchange rates and measure and manage different types of exposure to exchange rate fluctuations and country risk analysis; LO4 – Analyze strategies for long-term asset and liability management, including Direct Foreign Investment (DFI) and multinational capital structure, and short-term asset and liability management, including financing international trade, short-term financing, and international cash management.

Topics:

1. Managing Transaction Exposure, Managing Economic Exposure and Translation Exposure;
2. International Cash Management;
3. Multinational Financial Management and International Flow of Funds;
4. International Arbitrage and Interest Rate Parity;
5. Multinational Capital Structure, Cost of Capital, and Long-Term Debt Financing;
6. Government Influence on Exchange Rates;
7. Financing International Trade and Short-Term Financing;
8. Currency Derivatives;
9. Forecasting Exchange Rate and Measuring Exposure to Exchange Rate Fluctuations;
10. Relationships among Inflation, Interest Rates, and Exchange Rates;
11. Direct Foreign Investment and Country Risk Analysis;
12. International Financial Markets;
13. Exchange Rate Determination.