Finance 635

FINC 635: International Finance

Prerequisites: MBA status or permission of the instructor

Credit Hours: (3)

Finance 635 deals with the international financial environment and focuses on managerial aspects from a corporate financial perspective.

 

Detailed Description of Content of Course

International Financial Environment.

  • Multinational Financial Management: An Overview
  • International Flow of Funds
  • International Financial Markets
  • Exchange Rate Determination
  • Currency Futures and Options

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

 

Detailed Description of Conduct of Course

The course will be a combination of lecture, paper presentation, and case analysis. Oral as well as written communication is emphasized.

 

Goals and Objectives of the Course

Having successfully completed this course, the student will be able to:

a. Understand the underlying reasons for the transformation of a domestic company to a multinational organization.
b. Differentiate between a domestic financial market and a multinational financial market.
c. Develop an awareness of the opportunities in foreign markets.
d. Understand the implications of movements in exchange rates, foreign interest rates, labor costs, and inflation.
e. Develop an understanding risks inherent in foreign operations.
f. Understand the basics of international financial decision making required in international business operations.

 

Assessment Measures

a. Examinations. Students in FINC 635 will normally take one two-hour examination and a comprehensive final exam.
b. Class participation. Students are expected to analyze several cases and present their findings to the class. They are also expected to be ready to respond to the comments or critiques raised by their classmates.
c. Term Project. Students are expected to report orally on their term papers dealing with current issues in International Financial Management.

 

Other Course Information

a. Reading list. Outside readings will be assigned from the attached list of sources.

 

Review and Approval

DATE ACTION APPROVED BY
March 10, 1999 Revised