FIN4007 - International Finance
|Year of Study:||4|
|Prerequisites:||FIN2001 Financial Management / FIN3009 Financial Management for Journalism or with the Instructor’s permission and upon endorsement of the relevant Head and Programme Director|
This module is designed to provide students with an understanding of the key concepts and theories in the field of multinational finance and to illustrate the application of such concepts and theories at a macro level as well as at the level of the firm. Key aspects of multinational finance will be examined such as international financial markets and institutions, foreign exchange transactions and international financing and risk management.
Upon completion of this module, students should be able to:
- identify the basic factors affecting exchange rates in a floating exchange rate system;
- describe the different forms and consequences of central bank intervention in the foreign exchange market;
- demonstrate the basic equilibrium relationships, or parity conditions, among spot exchange rates, forward rates, inflation rates and interest rates;
- demonstrate the various ways in which a firm is affected by exchange rate changes and assess the effective management of that exposure;
- explain why firms may choose to raise capital overseas, and describe offshore markets such as the Eurocurrency and Eurobond markets; and
- evaluate the capital budgeting issues that are unique to foreign investment opportunities.