BA 441

Course Code & Number

BA 441

Course Title

International Finance

Level

BS

Credit Hours/ ECTS Credits

(3+0+0) 3 TEDU Credits, 6 ECTS Credits

Year of Study:

Senior

Semester:

Fall

Type of Course:

Elective

Mode of Delivery:

Face-to-face

Language of Instruction:

English

Pre-requisite / Co-requisite:

Catalog Description

Differences between domestic and international environments. Financial management of multinational corporations. International money and capital markets. Global financial crises. Foreign exchange and interest rate risks. Hedging and risk management.

Course Objectives

This course applies the theories of managerial and international finance to the problems of multinational treasury management. Topics include issues and techniques in multinational funds transfers; identifying and measuring foreign exchange and interest rate risk; multinational tax planning; managing foreign exchange and interest rate risk; hedging instruments, including forward contracts, options, and swaps; and financially engineered synthetics.

Course Learning Outcomes

Upon succesful completion of this course, a student will be able to
1. Explain how international capital markets work
2. Tell the differences between foreign exchange spot and forward markets
3. Describe the concepts of international parity relations, such as interest rate parity, purchasing power parity, and the international fisher equation
4. Employ models to forecast foreign exchange rates
5. Analyze exchange rate exposure for a multinational corporation
6. Use currency derivatives to hedge currency risk
7. Make international investment and capital budgeting decisions

Recommended Reading

1. Journal of International Business Studies 2. Journal of Finance 3. Journal of Financial Economics 4. Harvard Business Review 5. Related journal articles and publications