Advanced international finance

EM3E5M12

Program
PGE
PGE 3A -Finance (FIN)
UE
International Corporate Finance
Semester
A
Discipline
Finance
Contact hours
20 H
Number of spots
45
ECTS
3
Open to visitors
Yes
Language
Coordinator
Christian OTT


Pedagogical contribution of the course to the program

Développer un management à impact grâce aux connaissances et aux outils les plus récents dans les domaines du management

Developing a strategic and managerial vision in a complex, uncertain and changing environment
Evaluate sustainable managerial practices using managerial concepts and instruments as well as digital tools
Design solutions adapted to organizational problems by applying relevant methodologies

Développer des compétences managériales de niveau avancé se traduisant par un leadership responsable

Recommend decision making by taking a critical approach to driving change in organizations

Pratiquer un management à impact dans un environnement multiculturel et international, porté par un "European mindset"

Communicate in a professional context in (foreign) languages, in writing and/or orally
Formulate solutions to organizational challenges in a multicultural and international context, driven by a "European mindset"

Description

The course aims at providing future Chief Financial Officers and financial managers of multinational companies with analytical tools for making sound financial decisions in an international business environment. It introduces the key equilibrium relationships between inflation rates, interest rates, and exchange rates that form the basis of international financial management. It examines the short-, medium- and long-term financing options for a multinational company. It analyzes international investment opportunities.

Teaching methods

Face-to-face

- Lectures
- Tutorials
- E-learning

In group

- Exercises
- Case studies/texts

Interaction

- Discussions/debates

Others

No items in this list have been checked.

Learning objectives

Cognitive domain

Upon completion of this course, students should be able to
  • - (level 3) choose among short-, medium- and long-term financing options
  • - (level 4) analyze international investment opportunities
  • - (level 5) evaluate the key equilibrium relationships in international finance
  • - (level 5) interpret the environment of MNCs financial decisions
  • - (level 5) assess the benefits and risks from MNC’s financial decisions
  • - (level 6) integrate the different tools available to MNC for making financial decisions

Affective domain

Upon completion of this course, students should be able to
None affective domain have been associated with this course yet

Outline

1. Multinational companies and their environment 1.1. Globalization: International trade and capital flows 1.2. Multinational companies 1.3. Risk factors 2. Currency exchange rates 2.1. Currency exchange markets 2.2. Monetary System, monetary and fiscal policy 2.2. Parity conditions: Currency exchange rates, inflation rates, and interest rates 2.3. Currency management 3. Financing decisions of multinational companies 3.1. International short- and medium-term financing 3.2. International long-term financing 4. Investments decisions of multinational companies 4.1. Financial model 4.1.1. Free cash flows 4.1.2. Cost of capital 4.2. Valuation and investment decision 4.2.1. Discounted cash flow methods 4.2.2. Tax impact of investment decisions

No prerequisite has been provided

Knowledge in / Key concepts to master

This course builds on the concepts and techniques of accounting and corporate finance (e.g., net present value, cost of capital) introduced in the first year of the Programme Grande Ecole.

Teaching material

Mandatory tools for the course

- Computer
- Calculator
- Reference manuals

Documents in all formats


- Case studies/texts

Moodle platform

- Upload of class documents
- Coaching/mentoring

Software

- Pack Office (Word, Excel, PowerPoint, Access)

Additional electronic platforms

No items in this list have been checked.

Recommended reading


Bekaert, G. and Hodrick, R. (2018): International Financial Management (3rd edition). Cambridge: Cambridge University Press. Shapiro, Alan C. (2014): Multinational Financial Management (10th edition). Hoboken: Wiley. (available free of charge to all students on ScholarVox through library website)


No reading material has been provided.

EM Research: Be sure to mobilize at least one resource

Textbooks, case studies, translated material, etc. can be entered
Ott, C. (2020): The risks of mergers and acquisitions—Analyzing the incentives for risk reporting in Item 1A of 10-K filings. In: Journal of Business Research, Vol. 106, pp. 158-181.

Assessment

List of assessment methods

Intermediate assessment / continuous assessment 1Other (date, pop quiz, etc.) : To be announced in the course
Written (45 Min.) / Individual / English / Weight : 25 %
Details : The intermediate exam is taken online (Moodle exam).
This evaluation is used to measure ILO1.1-PGE, ILO1.2-PGE, ILO1.3-PGE, ILO4.1-PGE, ILO4.2-PGE
Final evaluationExam week
Written (90 Min.) / Individual / English / Weight : 75 %
Details : The final exam is paper-based. Students will need their calculator.
This evaluation is used to measure ILO1.1-PGE, ILO1.2-PGE, ILO1.3-PGE, ILO2.2-PGE, ILO4.1-PGE, ILO4.2-PGE
No assessment methods have been attributed to this course yet.