International Business Finance

Lecturer: 

TBC

Module description:

This course aims to develop an understanding of the financial management of multinational companies, (MNC’s), and in particular, factors influencing exchange rates and exchange rate system, international taxation, hedging of financial risk exposures and their impact on financing, foreign investment decisions and cross border mergers and acquisition.

Learning outcomes:

By the end of the module students should be able to:

  • Discuss and illustrate the impact of interest and inflation rates on exchange rates and the usefulness of the parity relationships.
  • Discuss and illustrate transaction and operating (economic) currency exposures and their management using external (derivatives and money markets) and internal techniques and policies.
  • Discuss the Euromarkets and factors survey evidence suggests influence the choice and mix of financing of MNC’s.
  • Understand the factors likely to influence the evaluation and implementation of international investment projects and cross border mergers and acquisitions.
  • Compute a suitable cost of capital.
  • Illustrate an appraisal of a proposed foreign investment decisions and cross border acquisition.
  • Describe transfer pricing and taxation influences on MNC policies and decisions.
  • Discuss working capital management decisions in a multinational context.

Assessment:

  • 3,000 word individual Assignment (50%)
  • 5,000 word group assignment (50%)

Reading list

  • Shapiro , AC, Multinational Financial Management, J.Wiley, 7th edition, 2002 
  • Financial Times: students are required to skim the paper for issues relating to MNC's and financial decision-making in such companies.