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EXC 3611 International Finance

EXC 3611 International Finance

Course code: 
EXC 3611
Department: 
Finance
Credits: 
7.5
Course coordinator: 
Alessandro Graniero
Course name in Norwegian: 
International Finance
Product category: 
Bachelor
Portfolio: 
BBA - Specialisation in International Business
Semester: 
2022 Autumn
Active status: 
Active
Level of study: 
Bachelor
Teaching language: 
English
Course type: 
One semester
Introduction

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.

Learning outcomes - Knowledge

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.
Learning outcomes - Skills

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
General Competence

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.

Course content
  1. Globalization and the firm
  2. Understanding exchange rates
  3. International financial markets
  4. Investing in financial assets internationally
  5. Measuring and managing a firm's exposure to the exchange rate
  6. Direct foreign investment by MNCs
  7. Political risk when undertaking direct foreign investment
  8. Multinational capital budgeting
  9. Multinational cost of capital
  10. Taxation and the MNC
Teaching and learning activities

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.

Software tools
No specified computer-based tools are required.
Additional information

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.

Qualifications

Higher Education Entrance Qualification

Disclaimer

Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Required prerequisite knowledge

An undergraduate course in Corporate Finance.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
EXC 36112
Grading scale:
ECTS
Grading rules:
Two examiners
Resit:
Examination every semester
30Yes2 Hour(s)
  • No support materials
Individual Mid-term exam All exams must be passed to obtain a final grade in the course.
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
EXC 36113
Grading scale:
ECTS
Grading rules:
Two examiners
Resit:
Examination every semester
70Yes2 Hour(s)
  • No support materials
Individual All exams must be passed to obtain a final grade in the course.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:30
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • No support materials
Duration:2 Hour(s)
Comment:Mid-term exam All exams must be passed to obtain a final grade in the course.
Exam code:EXC 36112
Grading scale:ECTS
Resit:Examination every semester
Exam category:Submission
Form of assessment:Written submission
Weight:70
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • No 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
Type of Assessment: 
Ordinary examination
All exams must be passed to get a grade in this course.
Total weight: 
100
Student workload
ActivityDurationComment
Teaching
42 Hour(s)
Prepare for teaching
110 Hour(s)
Student's own work with learning resources
48 Hour(s)
Sum workload: 
200

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.