International Finance

Code:

2FI05

Acronym:

IF

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2013/2014 - 1S (of 09-09-2013 to 20-12-2013)

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
CCG	0	Bologna Official Syllabus	2	-	3,5	27	94,5
MIF	74	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 decion-making for companies acting in an international context. We will address issues related to the international finance environment and related to the exchange rates forecast. Techniques for measuring exchange rate exposure and tools to manage this exposure will be studied. 
Topics on multinational capital budgeting will be also addressed, including country risk analysis and estimation of the international cost of capital.

Learning outcomes and competences

To develop the necessary skills to solve problems and take decisions in a multinational environment.

Working method

Presencial

Program

1. The international financial environment 
1.1 The multinational financial management 
1.2 The international flows of funds 
1.3 International financial markets 
1.4 The determination of the exchange rate 
1.5 The currency derivatives 

2. The exchange rates behavior 
2.1 The influence of governments 
2.2 The international arbitrage and interest rate parity 
2.3 The relationships among interest rate, inflation rate and exchange rate 

3. The exchange rate risk management 
3.1 Forecasting the exchange rate 
3.2 Measuring exposure to exchange rates fluctuations 
3.3 Managing transaction exposure 
3.4 Managing economic exposure and translation exposure 

4. The international investment decisions 
4.1 Foreign direct investment 
4.2 Multinational capital budgeting 
4.3 Country risk analysis 
4.4 Multinational cost of capital

Mandatory literature

Madura, Jeff; International Financial Management,, South-Western College Pub, 2010
Eitman, D.K, Stonehill, A.J. e Moffett, M.H.; Multinational Business Finance, Addison Wesley, 2006
Eun, C. e Resnick, B.; International Financial Management,, McGraw-Hill, 2008

Complementary Bibliography

Levi, Maurice D.; International Finance: The Markets and Financial Management of Multinational Business, McGraw-Hill, 1990

Teaching methods and learning activities

The teaching method includes moments where the main theoretical and conceptual aspects will be presented, and also moments where concepts and theories will be applied by solving real-world problems and case studies. 

Distributed evaluation with final exam.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Designation	Weight (%)
Exame	60,00
Trabalho escrito	40,00
Total:	100,00

Calculation formula of final grade

Assignment: 40% (2 or 3 students). Delivery: last session.
Final exam: 60%.

Examinations or Special Assignments

Possible topics for the Group Group Assignment include: literature review of a topic of the syllabus, or a practical report about the exchange risk management activities of a company, or about the international capital budgeting process/management.