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 Behavior
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 Assets 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

Book Title -: International Corporate Finance
Author -: Madura
Publisher -: Thomsons
ISBN No -: 9781439038291

 

Syllabus