International Corporate Finance

Course Objectives

At the end of the course the student will have the ability to:

Understand the flow of funds in international financial markets
Understand the impact of Government economic policies on exchange rates
Manage currency and exchange risks in international financial transactions
Develop strategies for international financing arrangements for both long and short term projects
Manage the investment in currencies
Undertake country analysis in financial terms

Course Content

THE INTERNATIONAL FINANCIAL ENVIRONMENT.
Multinational Financial Management: An Overview.
International Flow of Funds.
International Financial Markets.
Exchange Rate Determination.
Currency Derivatives.

EXCHANGE RATE BEHAVIOUR.
Government Influence on Exchange Rates.
International Arbitrage and Interest Rate Parity.
Relationships between Inflation, Interest Rates, and Exchange Rates.

EXCHANGE RATE RISK MANAGEMENT.
Forecasting Exchange Rates.
Measuring Exposure to Exchange Rate Fluctuations.
Managing Transaction Exposure.
Managing Economic Exposure and Translation Exposure.

LONG-TERM ASSET AND LIABILITY MANAGEMENT.
Direct Foreign Investment.
Multinational Capital budgeting.
Multinational Restructuring.
Country Risk Analysis.
Multinational Cost of Capital and Capital Structure.
Long-Term Financing.

SHORT-TERM ASSET AND LIABILITY MANAGEMENT.
Financing International Trade.
Short-Term Financing.
International Cash Management.
Managing a Holistic Marketing Organisation

Recommended Text:

International Corporate Finance 8/e. Madura.
Thomson Southwesterm ISBN 0-324-32382-4