It applies economic and finance theories to analyze challenges the international financial environment poses to financial managers. The course highlights the management feature of international financial corporations. Topics include balance of payments, international monetary system, globalization and the MNCs, international banking, market for exchange rates, international portfolio management, foreign direct investment international tax environment, and exports and imports.
- Understand the basic mechanics of exchange rates and what determines asset prices in global markets, and how currencies influence stock prices.
- Learn several of the central financial decisions multinational firms must make concerning capital structure, risk management, and tax optimization, including capitalized subsidiaries and partnerships with local firms.
- Understand how firms are exposed to exchange rates, and how firms should hedge those exposures.
- Analyze how tax considerations factor into internal financial decision-making.
- Understand how differing institutional arrangements, both formal and informal, impact financial decision-making.