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The course focuses on the theoretical and practical knowledge for the management of financial and investment functions in multinational corporations. Students will understand how the international capital markets, foreign exchange markets, and the derivatives market can be used to manage transaction and operating risks facing the multinational firm. Students will learn how to manage multinational companies' investment and financing activities. The relevance of country risk and international corporate governance in cross-border investments will also be examined. The general emphasis is on the identification and management of opportunities and risk relating to international investments, exchange rate fluctuations, international financial markets and government policy changes. |
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The course provides students with the basic tools to understand financial markets functioning, derivatives markets and investment funds. |
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The lessons cover the following topics:
• Financial management in a global context
• Objectives of the firm and the impact of risk
• The nature and measurement of exposure and risk
• The balance of payments
• The international monetary system
• Global financial markets and Interest rates
• The foreign exchange market
• Forwards, swaps and interest parity
• Currency and Interest rate futures
• Currency options
• Exchange rate determination and forecasting
• Corporate exposure management policy
• Hedging, Speculation and Management of Transactions Exposure
• Management of Operating Exposure
• Management of interest rate exposure FRAs, Interest rate caps and floors
• Financial Swaps and Credit derivatives
• Short-term financial management in a multinational corporation
• International Equity Investment
• Long-term borrowing in the Global capital markets
• International project appraisal
• Accounting implications of international activities
• Tax implications of international activities |
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The course prescribes open questions and numerical exercises. |
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