FIN41720 International Finance

Academic Year 2017/2018

The transformation of the global economy has dramatic implications for business, as firms must be able to revise their corporate policies thoroughly and take advantage of new challenges and opportunities that arise. As the world’s money and capital markets are becoming more integrated, a solid understanding of international finance has become a prerequisite for effective corporate decision making. This module focuses on decision making in an international context and concentrates on those decision elements that are mostly faced by multinational corporations. It discusses the fundamental concepts of international finance, along with exchange rate determination, international parity relationships, futures and options on foreign exchange, and management of foreign currency exposures.

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Curricular information is subject to change

Learning Outcomes:

At the end of this module students should:

1. Explain why financial managers of international firms need to exploit rapidly changing global economic conditions
2. Explain the concept of an equilibrium exchange rate and identify the basic factors that affect exchange rates
3. Describe the key theoretical relationships among spot and forward exchange rates, inflation rates, and interest rates that result from international arbitrage activities
4. Explain how currency futures and options contracts can be used to manage currency risk and to speculate on future currency movements
5. Explain how international investing can allow investors to achieve a better risk-return trade-off than can investing solely in domestic securities

Student Effort Type Hours
Lectures

24

Autonomous Student Learning

136

Total

160

Requirements, Exclusions and Recommendations

Not applicable to this module.



 
Description % of Final Grade Timing
Examination: Closed book exam

70

2 hour End of Trimester Exam
Continuous Assessment: Group assignment

30

Unspecified

Compensation

This module is not passable by compensation

Resit Opportunities

In-semester assessment

Remediation

If you fail this module you may repeat, resit or substitute where permissible

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