EXC 3611 International Finance
EXC 3611 International Finance
The purpose of the course is to give an introduction to the management of finance for a firm operating internationally. The globalization and internationalization of financial and product markets expose all firms to new and different types of risk, as well as new instruments to deal with these risks. As a consequence of this, the firm's investment and financing decisions need to be modified. The objective of the course is therefore to study and understand how corporate financial management is affected by, and can take advantage of, international economic environments.
After taking the course, the students shall be able to explain key concepts and give an account of the tools used in analyses of problems that arise in international finance (these tools include methods, techniques, models, theories, etc. applied in the subject area).
- Examples of concepts that students shall be able to explain: exchange rates, parity conditions, equity and debt, international investment and diversification, currency risk, transaction, operating and translation exposure, political and country risk of FDI, Adjusted Present Value, International CAPM, Taxation and the MNC.
- Examples from the toolbox: cash budget, investment budget, adjusted present value, exchange rate exposure, international capital asset pricing model.
After taking the course, the students shall be able to (a) apply knowledge (i.e. concepts and skills) in analyses and discussions on problems that arise in international finance, (b) distinguish between relevant and irrelevant information, and (c) give written answers to questions so that the readers understand the applied methods and conclusions. Examples:
- When the tool is given, be able to apply the tool correctly
- Based on simple situation descriptions, choose the right tool and apply it correctly
- Based on more complex situation descriptions, be able to produce relevant information, link it to the suitable tool and apply the tool correctly
After taking the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the field of international finance.
- Globalization and the firm
- Understanding exchange rates
- International financial markets
- Investing in financial assets internationally
- Measuring and managing a firm's exposure to the exchange rate
- Direct foreign investment by MNCs
- Political risk when undertaking direct foreign investment
- Multinational capital budgeting
- Multinational cost of capital
- Taxation and the MNC
The course will include a combination of lectures and plenary tutorials where solutions to exercises will be explained.
Please note that whilst attendance is not compulsory, it is the students responsibility to obtain any information provided in class that is not included on the course homepage/It's learning or text book. Homepages and/or It's learning are not designed for the purpose of students who choose not to attend class.
Students are recommended to use computer-based tools, e.g. spreadsheets. Such tools, however, are not allowed at the examination.
Re-sit examiniation
From the autumn of 2022, the examination form in this course will change from Continuous assessment, including 4 process elements (Examination code EXC 36111), to two ordinary examination components with the examination codes EXC 36112 and EXC 36113. Students who wish re-sit, must comply with the new form of examination.
Honour Code
Academic honesty and trust are important to all of us as individuals, and represent values that are encouraged and promoted by the honour code system. This is a most significant university tradition. Students are responsible for familiarizing themselves with the ideals of the honour code system, to which the faculty are also deeply committed. The expected behaviour and honour code is outlined here.
Any violation of the honour code will be dealt with in accordance with BI’s procedures for cheating. These issues are a serious matter to everyone associated with the programs at BI and are at the heart of the honour code and academic integrity. If you have any questions about your responsibilities under the honour code, please ask.
Higher Education Entrance Qualification
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
An undergraduate course in Corporate Finance.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 30 Grouping: Individual Support materials:
Duration: 2 Hour(s) Exam code: EXC 36112 Grading scale: ECTS Resit: Examination every semester |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 2 Hour(s) Comment: All exams must be passed to obtain a final grade in the course. Exam code: EXC 36113 Grading scale: ECTS Resit: Examination every semester |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 42 Hour(s) | |
Prepare for teaching | 110 Hour(s) | |
Student's own work with learning resources | 48 Hour(s) |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.
All exams must be passed to obtain a final grade in the course.