International Finance

EM1F5M2AA1

Program
PGE
PGE 3A - International and European Business (IEB)
UE
Principles of International Management
Semester
A
Discipline
Finance
Contact hours
20 H
Number of spots
45
ECTS
5
Open to visitors
Yes
Language
Coordinator
Ali Özdakak


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 internationalization of finance and commerce has been brought about by the great advances in transportation, communication, and IT. This development introduces a new commercial reality on a previously unimagined scale and with a key player - the multinational corporation (MNC). The main objective of this course is to provide a framework and tools with which the key financial decisions can be analyzed in an international context. The approach is to treat international financial management as a natural and logical extension of the principles learned in (basic) financial management courses. Thus, it builds on and extends the valuation tools provided by domestic corporate finance to account for dimensions unique to MNCs. After successful completion of the course, students will have a solid understanding of the most fundamental issues and concepts of international finance. Without being exhaustive the following topics will be covered in the course: drivers and theories of internationalization, country risk analysis, sovereign debt buy backs, determination of international cost of capital, valuation of foreign investments, managing currency risk. The course does not assume prior knowledge of international economics or international finance and is therefore self-contained in that respect. However, it presumes a knowledge of basic corporate finance and algebra.

Teaching methods

Face-to-face

- Lectures
- Tutorials

In group

- Exercises

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 5) evaluate specific international investment projects
  • - (level 5) assess the challenges in an international business environment
  • - (level 5) measure political risk factors
  • - (level 6) create strategies against currency risk
  • - (level 6) formulate the specific needs of multinational corporations in terms of financial management
  • - (level 6) combine different valuation and hedging tools

Affective domain

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

Outline

- Environment of international Financial Management: Country risk analysis and sovereign debt - Financing the multinational corporation: International financing, cost of capital for foreign investments - Foreign investment analysis: Capital budgeting for the multinational corporation - Managing currency risk: foreign exchange markets, hedging techniques - Parity conditions

No prerequisite has been provided

Knowledge in / Key concepts to master

- Basic calculation skills - Basic corporate finance principles, such as: Net Present Value, Cost of Capital, CAPM - Basic understanding of Derivatives and Foreign Exchange would be a plus

Teaching material

Mandatory tools for the course

- Computer
- Calculator

Documents in all formats

- Photocopies
- Case studies/texts

Moodle platform

- Upload of class documents
- Interface to submit coursework
- Assessments

Software

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

Additional electronic platforms

No items in this list have been checked.

Recommended reading


Reference manual: A. C. Shapiro, 2013, Multinational Financial Management, Wiley http://unistra.scholarvox.com.scd-rproxy.u-strasbg.fr/catalog/book/docid/88834221


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
No reading material has been provided.

Assessment

List of assessment methods

Intermediate assessment / continuous assessment 1Class no. 5
Written (90 Min.) / Individual / English / Weight : 50 %
This evaluation is used to measure ILO1.1-PGE, ILO1.2-PGE, ILO1.3-PGE
Final evaluationExam week
Written (120 Min.) / Individual / English / Weight : 50 %
This evaluation is used to measure ILO2.2-PGE, ILO3.2-PGE, ILO4.1-PGE, ILO4.2-PGE
No assessment methods have been attributed to this course yet.