Checking date: 21/09/2021


Course: 2021/2022

International Finance
(16636)
Study: Dual Bachelor in International Studies and Political Science (320)


Coordinating teacher: GUTIERREZ URTIAGA, MARIA

Department assigned to the subject: Department of Business Administration

Type: Compulsory
ECTS Credits: 6.0 ECTS

Course:
Semester:




Requirements (Subjects that are assumed to be known)
Financial Economics Corporate Finnace
Objectives
This course introduces the student to International Finance. 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. After this course the student should be able to: -Have a better understanding of the role of International Financial Management in a modern corporation -Understand the accounting and risk issues raised by foreign operations -Asses the role of financial derivatives to hedge risk in the international markets -Analyse investment decisions in an international context Methodology The approach of the course is to treat International Financial Management 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 data 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.
Skills and learning outcomes
Description of contents: programme
1. Foreign Trade and the foreign exchange markets 2. International Parity Conditions 3. Foreign exchange risk: Translation, transaction and operating exposure. 4. Hedging currency risk with derivatives. 5. Foreign Direct Investment Assessment and Valuation. Political Risk.
Assessment System
  • % end-of-term-examination 50
  • % of continuous assessment (assigments, laboratory, practicals...) 50
Calendar of Continuous assessment
Basic Bibliography
  • Eiteman, D. Stonehill A. I. y Moffet M. H . Las Finanzas en las Empresas Multinacionales, 12ª edición. Pearson. 2011
  • Eiteman, D. Stonehill A. I. y Moffet M. H . Multinational Business Finance 15th edition. Pearson. 2019
  • Shapiro, A. C. Multinational Financial Management; 11th. edition. John Wiley & Sons, Inc.. 2019
Additional Bibliography
  • Brealey, R.A. Myers, S.C. y Allen, F. . Principles of Corporate Finance, 11th edition, Chapter 28. McGraw-Hill. 2014
Detailed subject contents or complementary information about assessment system of B.T.

The course syllabus may change due academic events or other reasons.