International Business Finance (BUS235)
Module code: BUS235
On completion of this course, students should have gained understanding of the following topics: the international financial systems, the opportunities in international FX investments, the relevance of hedging in the management of currency risk, country risk and international diversification. Students should be able to learn the importance of international financial theories to finance practitioners; acquire numerical and problem-solving skills required by managers in the context of globalization and the growing integration of the international economy.
Topic 1: The Internationalization of Business and Finance - valuation of a multinational firm
Topic 2: Currency Systems and Valuation; Currency Markets and Derivatives
Topic 3: Parity Conditions in International Finance and Monetary Approach to Exchange Rate Determination
Topic 4: FX market microstructure and Forecasting exchange rates
Topic 5: Foreign Exchange Exposure: Types of Risk, Measurement and Management
Topic 6: Managing International Risks - Hedging with forwards and futures; Country Risk Analysis and Trade Finance
Topic 7: Multinational Financial Management: International Investment and Diversified Portfolios
The aim of this module is to develop an understanding of topics in international business finance, viewed primarily from the perspective of managers doing business overseas, namely the management of foreign exchange exposure, multinational investment decisions with regard to fixed interest securities, interest rates and exchange rates, international currency risk. It also involves understanding of the macroeconomic environment governing international business. This module will help students learn how the fundamentals of corporate finance relate to multinational firms, covering a segment that is usually excluded in a basic module on financial management. Managing international risks including country risks will form an important component of this module.
In-course test 30%