Checking date: 12/05/2019


Course: 2019/2020

International Finance
(12297)
Study: Master in Business Administration (MBA) (301)
EPE


Coordinating teacher: CAMINO BLASCO, DAVID

Department assigned to the subject: Department of Business Administration

Type: Electives
ECTS Credits: 2.0 ECTS

Course:
Semester:




Students are expected to have completed
Statistics and Quantitative Methods Financial Economics Corporate Finance
Competences and skills that will be acquired and learning results.
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.
Description of contents: programme
1.1 Multinationals and the International Financial System. 1.2 The foreign exchange markets. Globalization and informationin 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.
Learning activities and methodology
Theoretical classes Practicaly oriented classes FOREX Simulator Case discussion Tutorials Group 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 Divesification, 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
Assessment System
  • % end-of-term-examination 50
  • % of continuous assessment (assigments, laboratory, practicals...) 50
Basic Bibliography
  • Eiteman, D. Stonehill A. I. and Moffet M. H . Multinational Business Finance (MBF), 14th edition. Pearson, Prentice-Hall. 2016
  • Shapiro A.C. and Moles, P. . Multinational Financial Management . John Wiley & Sons.. 2014
Additional Bibliography
  • Bekaert G.J. and Hodrick R.J. . International Financial Management. Pearson. 2012
  • Brealey, R.A. Myers, S.C. y Allen, F. . Principles of Corporate Finance, 11th. editiion, Ch. 28. McGraw-Hill, . 2014
Detailed subject contents or complementary information about assessment system of B.T.

The course syllabus and the academic weekly planning may change due academic events or other reasons.