Module 1

Module 1: International financial system, foreign exchange market and exchange rates (7.5 hours)

1. Balance of payments
2. International monetary system
3. International financial markets
4. Foreign exchange markets Exchange rate determination

Module 2

Module 2: Forex derivatives and foreign exchange exposures (7.5 hours)

1. Foreign currency derivatives
2. Forward, Futures, Options, Swaps.
3. Currency exposure measurement.

Module 3

Module 3: Multinational financing and investment decisions (7.5 hours)

1. International investing and International Capital Budgeting
2. International financing – short-term and long-term
3. International cash/liquidity management
4. International capital structure and cost of capital

Module 4

Module 4: Theories in international finance & global issues in finance (7.5 hours)

1. Balance of Payment theories
2. International Parity theories
3. International monetary system and reform
4. Financial network and banking crisis
5. Global imbalance and crisis
6. Sovereign debt crisis

Course Description

Businesses are operating in an increasingly interconnected global environment. Businesses today are directly or indirectly exposed to international competition. Hence, the ability to analyze currency risks and assess the global financial environment is necessary to work in global organizations. This course aims to provide students with an in-depth knowledge of these issues. The main topics covered in this course are forex markets, international Parity conditions, forex risks, currency derivatives and hedging issues, issues with currency investment strategies, issues with cross-border financing decisions, and cross-border investment decisions.

Course Outcomes& Learning levels

On completion of this course, students will be able to,

CO1: Demonstrate a basic understanding of the foreign exchange market and exchange rates

CO2: apply tools like foreign exchange derivatives to manage foreign exchange exposures of firms.

CO3: analyze the issues relating to multinational financing and investment decisions and recommend courses of action.

CO4: analyze issues in multinational finance by using international finance theories.

Evaluation Pattern

*Based on assignments / Tests / Quizzes / Case Studies / Projects / Term paper / Field visit report.

Course Text

1. Cheol S. Eun and Bruce G. Resnick, International Financial Management, 9th edition, McGraw- Hill, 2021.

Reference Books

1. Alan C. Shapiro, Multinational Financial Management, 11th edition, John Wiley, 2019.
2. David K. Eiteman, Arthur I. Stonehill and Michael H. Moffett, Multinational Business Finance, 15th edition, Pearson Education, 2021