Master
2023/2024
International Financial Management
Type:
Compulsory course
Area of studies:
Management
Delivered by:
Department of Finance
When:
1 year, 3, 4 module
Mode of studies:
offline
Open to:
students of all HSE University campuses
Instructors:
Darko Vukovic
Master’s programme:
International Business in the Asia-Pacific Region
Language:
English
ECTS credits:
6
Contact hours:
48
Course Syllabus
Abstract
International financial management can be viewed as an extension of domestic financial management, where significant focus is on the exchange rate, representing the value of one currency in terms of the other. Given how interconnected the markets are nowadays, fluctuations in exchange rates may impact not only those agents involved in international trade but also agents who have nothing to do with it, affecting interest rates within the country. The understanding of such impacts will lead to more thoughtful financial decisions.
Learning Objectives
- To gain skills for assessing how interest and exchange rates are affected by risks and foreign markets, and for constructing derivatives about interest and exchange rates that would help a company to achieve its goals.
Expected Learning Outcomes
- Understand the basics of globalization and the ideas behind (MNCs)
- Understand the relationships among exchange rate, interest rates, and inflation
- Understand exchange rate determination
- Understand the exchange rate and monetary policy
- Understand the International flow of funds
- Understand the risks in international financial management
- Understand the Forex fluctuations
- Understand the cross border transactions for MNCs
- Analyse the practical IFM Issues faced by MNCs
- Analyse the International Financial Markets
- Analyze the Hedge Funds and Private Equity
- Analyze the Great Financial Crisis 2008-09
- Able to construct derivatives
- Able to assess interest rates
- Able to assess exchange rates
- Able to assess risks
Course Contents
- 1.1 Financial Management Theory : Quick Recap
- 1.2 Globalisation & Multi National Companies (MNCs)
- 2.1 Theory : Relationships among exchange rate, interest rates, and inflation
- 2.2 Exchange rate determination
- 3.1 Cross border transactions for MNCs
- 3.2 Practical IFM Issues faced by MNCs
- 4.1 Risks in international financial management
- 4.2 Forex Fluctuations - Managing Economic & Translation Exposure
- 5.1 Exchange Rate and Monetary Policy
- 5.2 International flow of funds
- 6.1 International Financial Markets
- 6.2 Hedge Funds and Private Equity
- 6.3 Great Financial Crisis 2008-09
Interim Assessment
- 2023/2024 4th module0.2 * Case Study + 0.4 * Exam + 0.2 * Mid Term + 0.1 * Surpize Quiz N2 + 0.1 * Surprise Quiz N1
Bibliography
Recommended Core Bibliography
- Foundations of Multinational Financial Management, 5th ed., 613 p., Shapiro, A. C., 2005
- Moffett, M. H., Stonehill, A. I., & Eiteman, D. K. (2016). Fundamentals of Multinational Finance, Global Edition: Vol. Fifth edition, Global edition. Pearson.
Recommended Additional Bibliography
- Foundations of multinational financial management, Shapiro, A. C., 2002
- Foundations of multinational financial management, Shapiro, A. C., 2005
- Jeff Madura, & Roland Fox. (2020). International Financial Management, Edition 5. Cengage Learning.
- Mishkin, F. S. (2016). The Economics of Money, Banking and Financial Markets, Global Edition (Vol. Eleventh edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419607