International Finance

Code:

2FI05

Acronym:

IF

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2016/2017 - 1S

Active?	Yes
Responsible unit:	Management
Course/CS Responsible:	Master in Finance

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
MIF	67	Bologna Official Syllabus	1	-	3,5	27	94,5

Teaching language

English

Objectives

The aim of the course is to provide tools and techniques for supporting the decision-making for companies acting in an international context. We will address issues related to:  international finance environment; exchange rates forecasting; measuring snd managing exchange rate exposure; multinational capital budgeting (including country risk analysis and estimation of the international cost of capital).

Learning outcomes and competences

Advanced knowledge about international finance major concepts; Skills to solve problems and take decisions in a multinational environment with a focus on exchange rate hedging and multinational capital budgeting.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Pre: Findamentals of Financial Theory, Financial Management (including Capital Budgeting) and International Finance
Co: Basics of Financial Derivatives

Program

1. International financial environment 
International financial markets 
Exchange rate 
Currency derivatives 

2. Exchange rates behavior and forecasting
The influence of governments 
International parity relations
Forecasting techniques and models

3. Exchange rate risk management 
Measuring exposure to exchange rates fluctuations 
Managing transaction exposure 
Managing economic exposure and translation exposure 

4. The international investment and financing decisions 
Multinational capital budgeting 
Country risk analysis 
International corporate funding and international cost of capital

Mandatory literature

Bekaert, Geert; International financial management. ISBN: 978-1-29202-139-3
Eun, Cheol S.; International financial management. ISBN: 978-0-07-803465-7
Madura, Jeff; International financial management. ISBN: 978-1-4080-3229-9
Eiteman, David K.; Multinational business finance. ISBN: 978-0-13-612156-5

Complementary Bibliography

Levi, Maurice D.; International finance. ISBN: 978-0-415-77459-8

Teaching methods and learning activities

Blended learning method includes moments where conceptual knowledge and apllications and/or case studies will be presented by instructor and/or students.  

Group assignements and individual test.

keywords

Social sciences > Economics > Management studies > Financial management

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Participação presencial	10,00
Teste	50,00
Trabalho escrito	40,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Elaboração de projeto	30,00
Estudo autónomo	30,00
Total:	60,00

Calculation formula of final grade

Group Assignments: 40% (3 students) with Oral Presentation
Test/Exam: 50%; Class Participation (10%)

The students are required to have done the assignment in order to have access to the exam (article 9, n. 1, a) of the grading rules).

Exam minimum grade is 10 out of 20.