Financial Management in International Business

Today’s international finance is heavily influenced by the changes in global geopolitical environment, information technology, and ethics. Relatively recent international financial developments include the American credit crisis, European Union’s sovereign debt crisis and the “euro”, continued pegging to anchor currencies like the U.S. dollar, and the emergence of BRIC (Brazil, Russia, India and China) and their currencies (the Chinese yuan, the Indian rupee, Brazilian real, and the Russian ruble) all of which have serious business implications world-wide as we move from a unipolar to multipolar world. With liberalization of international trade and investment on a multilateral basis, it is imperative that business persons, especially those in the finance field, have a fundamental understanding of international finance.

See the links below for more information regarding this course.

Summer Semester II, 2014 (July 31-Aug 2, Aug 7-9, Aug 21-23)

Course Objectives

The goal of this course is to provide you with a strong foundation in international financial management, which will:

• Enable you to interpret and respond to the day-to-day financial challenges faced by firms in a global setting
  
• Provide you with a solid understanding of exchange rate systems and its determinants
• Empower you to measure and manage foreign exchange risk with key currency derivatives
• Enable you to make sound international asset and liability management decisions.

Course Content

This is a structured survey course, which examines the problems, techniques, and policies of financial decision-making in a global geopolitical environment. The course is divided into three segments. First, we will survey the international monetary system, including the balance of international payments, the workings of the international credit and foreign exchange markets, exchange rate determination, the role of international economic policy institutions and trade finance. Second, we will examine the impact of exchange rates in corporate decision making, i.e., foreign exchange risk measurement and management. Finally, we will analyze why (and how) firms go abroad and how foreign investment and M&A decisions are made.