Statistics and Quantitative Methods Financial Economics Corporate Finance

This course introduces the student to International Financial Management. The course focuses on decision making in an international context and how financing and investment decisions change when a firm operates in more than one country. The course explores the international financial markets and currency parity conditions, including the relationship between spot and forward exchange rates, interest rates, and inflation rates. The course will also cover the role of derivatives in hedging risk in the international capital markets, as well as, the assessment and valuation of foreign investments. Program Learning Outcomes After this course, the student should be able to: 1.1 Have a better understanding of the role of International Financial Management in a modern corporation 1.2 Understand the financial and risk issues raised by foreign operations 1.3 Asses the role of financial derivatives to hedge risk in the international markets 1.4 Analyse investment decisions in an international context 1.5 Students should be able to understand the role of a digital economy, in business decision making Advancing your Knowledge. - Understand the international economy, as an integrated set of capital flows, subject to market risks - Improve the capacity of analysis of the foreign exchange markets, to understand the dynamics of the economic variables that determine economic flows - Integrate the international capital markets with the financing and hedging, investment and foreign trade decisions in a modern corporation - To analyze the various sources of risks for a company in global environment. - To understand, the far reach value of sustainability, for the corporation and the economy, as a whole, in a global context.

1.1 Multinationals and the International Financial System. The Balance of Payments. 1.2 The foreign exchange markets. Globalization and information in the digital era 2.1 Spot and forward markets. Quotes and relationship. Forex Simulator. 2.2 International Parity Conditions and Forecasting 3.1 Foreign exchange risk and exposure. 3.2 Translation, transaction and operating exposure. 4.1 Forex Derivatives: Futures, Options and Swaps 4.2 Hedging currency risk with derivatives. 5.1 Foreign Trade Finance. Comparative advantage and sustainability Issues 5.2 Foreign Direct Investment Assessment and Valuation. Political Risk.

Theoretical classes Practically oriented classes FOREX Simulator Case discussion Tutorials Group home work Individual work Methodology The approach of the course is to treat International Finance as a natural and logical extension of the foundations and principles learn in Financial Management. Thus, it builds on and extends the valuation framework (NPV, IRR, Risk Diversification, Derivatives, etc.) learn in domestic Corporate Finance, whose previous basic knowledge will be an advantage during the course The methodology of the course includes both a general framework for analyzing international financial issues, understanding market information and the use some specific quantitative simulators. The course highlights both theory and applications. Extensive use of cases and investment tools, presents the student with a challenging and real-life environment in which to apply decision-making skills in an international context. Use of AI in this course Students can use, in this course, predictive, but not generative, ChatGPT or similar AI tools, to help your leaning process, but aren¿t allowed to consult it during test or exams. Nevertheless, you have to be aware of deep fakes on the web and use common sense when reading. You have also give credit, of all sources of information you have been using, in your homework.