International Finance BSNA 2319

Course description:

Understand international finance from both corporate and international banking viewpoints, as well as financial constraints on international business and differences between domestic and international environments. Examine the international monetary system, the differences between foreign trade and foreign investments, international sales terms, measurement and management of foreign-exchange exposure, international financial markets and banking, import/export financing, current-asset management and international taxation.

Course Aims:

  • Study the role that international trade and investment, currency movements, derivative instruments, hedging strategies.
  • Study international financial markets, and international agreements and institutions play in the management of multinational corporations.
  • Study the current asset management and international taxation.

Course outcomes:

At the end of this course students should be able to:
  • Identify the reasons for international trade.
  • Describe the importance of balance of trade and balance of payments to the development of macroeconomic policy.
  • Discuss the role that international institutions play in the global arena.
  • Judge whether international parity conditions are met.
  • Describe the various currency arrangements a country may adopt.
  • Identify opportunities for arbitrage and discuss methods to exploit these opportunities.
  • Describe and distinguish among alternative derivative instruments, including the different types of exposures multinational corporations face when using derivative instruments.   
  • Evaluate cross-border investment opportunities, and describe a multinational firm’s decision-making process for long-term capital budgeting, short-term cash-flow management, and the management of international taxation.