| Course Objectives: |
The course aims at providing a solid understanding of international finance within a complex capital markets context. It emphasizes the managerial perspective of finance for a multinational corporation (MNC). Based on macroeconomic and institutional foundations, advanced techniques and instruments for managing the foreign exchange exposure and risk of MNCs are developed. The course further addresses international banking and money
markets. Students will be prepared to, and provided with the skills required for, international investment management, cross-border acquisitions, international capital budgeting, and multinational cash management and trade financing.
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| Course Content: |
The economies of the world are increasingly interconnected. While 50 years ago, the primary economic links between countries were in the exchanges of goods, today financial flows are far consequential than trade. Trade finance, investment, loans, and foreign exchange transactions constitute a multi-trillion euro business annually. While these flows have helped fuel economic growth around the world, they also leave countries much more exposed to contagion from economic difficulties elsewhere. This course aims at providing a solid understanding of international economics and finance. We will explore balance of payments analysis, exchange rates and their determination, and financial globalization. We will look at the challenges and opportunities presented by single currency areas like the Euro area. We will discuss the downsides of financial globalization and examine how financial crises are transmitted internationally. Finally, we will explore how multinational firms use financial instruments to finance their operations and reduce risks. |
Course Learning Outcomes (CLOs) are those describing the knowledge, skills and competencies that students are expected to achieve upon successful completion of the course. In this context, Course Learning Outcomes defined for this course unit are as follows:
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| Knowledge
(Described as Theoritical and/or Factual Knowledge.)
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1) Gains knowledge about the development of the international monetary system.
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2) Gains knowledge and interprets the Balance of Payments Statement.
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3) Knows foreign exchange markets and international parity conditions.
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4) Knowledgeable about foreign exchange derivatives (Futures, Options) as well as interest rate risk and swaps.
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5) Knows the risks of foreign exchange exposure (Transaction, Translation and Operating) and can make suggestions about what can be done to manage these risks.
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6) Compares the cost of capital for multinational firms to domestic firms.
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7) He/she is knowledgeable about the key documents in international trade finance, programs of government institutions related to export financing, alternatives of trade finance and forfaiting.
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8) Discusses the structural choices for foreign market entry, political risks and its financial impacts.
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| Skills
(Describe as Cognitive and/or Practical Skills.)
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| Competences
(Described as "Ability of the learner to apply knowledge and skills autonomously with responsibility", "Learning to learn"," Communication and social" and "Field specific" competences.)
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| Week |
Subject |
Materials Sharing * |
|
Related Preparation |
Further Study |
| 1) |
Multinational Financial Management: Opportunities and Challenges |
Textbook
Materyal
|
- -
|
| 2) |
The International Monetary System |
Textbook
Materyal
|
- -
|
| 3) |
The Balance of Payments |
Textbook
Materyal
|
- -
|
| 4) |
Financial Goals and Corporate Governance |
Textbook
Materyal
|
- -
|
| 5) |
Foreign Exchange Market and International Parity Conditions |
Textbook
Materyal
|
- -
|
| 6) |
Foreign Currency Derivatives: Futures & Options |
Textbook
Materyal
|
- -
|
| 7) |
Interest Rate Risk and Swaps |
Textbook
Materyal
|
- -
|
| 8) |
Midterm |
-
Materyal
|
- -
|
| 9) |
Transaction Exposure |
Textbook
Materyal
|
- -
|
| 10) |
Translation Exposure |
Textbook
Materyal
|
- -
|
| 11) |
Operating Exposure (Competitive or Strategic Exposure) |
Textbook
Materyal
|
- -
|
| 12) |
Global Cost and Availability of Capital, and Funding the Multinational Firm |
Textbook
Materyal
|
- -
|
| 13) |
International Trade Finance
|
Textbook
Materyal
|
- -
|
| 14) |
Foreign Direct Investment and Political Risk |
Textbook
Materyal
|
- -
|
| 15) |
Multinational Capital Budgeting and Cross-Border Acqusitions |
Textbook
Materyal
|
- -
|
| WORKLOAD OF TEACHING & LEARNING ACTIVITIES |
| Teaching & Learning Activities |
# of Activities per semester |
Duration (hour) |
Total Workload |
| Course |
14 |
3 |
42 |
| Laboratory |
0 |
0 |
0 |
| Application |
0 |
0 |
0 |
| Special Course Internship (Work Placement) |
0 |
0 |
0 |
| Field Work |
0 |
0 |
0 |
| Study Hours Out of Class |
0 |
0 |
0 |
| Presentations / Seminar |
0 |
0 |
0 |
| Project |
0 |
0 |
0 |
| Homework Assignments |
0 |
0 |
0 |
| Total Workload of Teaching & Learning Activities |
- |
- |
42 |
| WORKLOAD OF ASSESMENT & EVALUATION ACTIVITIES |
| Assesment & Evaluation Activities |
# of Activities per semester |
Duration (hour) |
Total Workload |
| Quizzes |
2 |
16 |
32 |
| Midterms |
1 |
15 |
15 |
| Semester Final Exam |
1 |
30 |
30 |
| Total Workload of Assesment & Evaluation Activities |
- |
- |
77 |
| TOTAL WORKLOAD (Teaching & Learning + Assesment & Evaluation Activities) |
119 |
| ECTS CREDITS OF THE COURSE (Total Workload/25.5 h) |
5 |
ECTS Information Package / Course Catalogue
