GRA 6292 International Corporate Finance
In today’s globalized world, all financial decisions, such as investments, mergers and acquisitions, have international dimensions. The international dimension adds additional challenges and layers of complexity. In particular, exchange rates and cross-country differences in regulation, taxation, political risk and governance quality all impact the way financial decisions are made.
This course aims to provide the participants with a sound understanding of financial decision-making in the multinational firm. The course is applied in nature and can be broadly split into three parts. The first part of the course covers the basics of exchange-rate determination, including payment systems and the organization of foreign exchange markets. It will also cover developments in digital cash, cryptocurrencies, and blockchain technologies. The second part covers instruments to manage and hedge exchange-rate risk. The third, and most important part of the course, focuses on the financial management of the multinational firm. It covers some traditional issues in corporate finance such as capital budgeting, cost of capital, and investments in physical assets, and how these issues are analysed in an international perspective.
- has advanced knowledge within the general field of international corporate finance and specialized insight in the additional challenges operating with several currencies entail
- can apply knowledge to new questions firms face when operating across jurisdictions and with different currencies
- understands the value added for society of firms operating in an international environment
- can analyse and deal critically with various sources of information and use them to structure and formulate solutions to challenges firms face when operating across jurisdictions and with different currencies
- understands existing theories, methods and interpretations for currency fluctuations and can work independently to solve practical problems when firms face exchange rate risks
- can use relevant methods from financial research in an independent manner
- can analyse relevant academic, professional and research ethical problems in the area of international corporate finance
- can apply her/his knowledge and skills in new area of international corporate finance in order to carry out advanced assignments and projects
- can communicate extensive independent work and masters the language and terminology of international corporate finance
- The foreign exchange market and exchange rate determination
- The market for foreign exchange
- Cryptocurrencies, cryptoassets and blockchain technologies
- The concept of nominal exchange rates and real exchange rates
- Hypothesis 1: nominal exchange-rate volatility is a reflection of differences in price and cost levels across countries
- Hypothesis 2: nominal exchange-rate volatility is a reflection of differences in interest-rate levels across countries
- Hedging foreign-exchange risk
- Forwards and futures
- Currency options
- Financial management of the multinational firm
- Foreign-exchange transaction, economic and translation exposure
- Foreign direct investment and cross-border acquisitions
- Sovereign political risk
- International capital structure and the cost of capital
- International capital budgeting
- Multinational cash management
- International trade finance
- International tax environment and transfer pricing
Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have spesific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
Due to the Covid-19 pandemic, there may be deviations in teaching and learning activities as well as exams, compared with what is described in this course description.
Information about what is taught on campus and other digital forms will be presented with the lecture plan before the start of the course each semester.
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination when next scheduled course
|Form of assessment:||Written submission|
|Support materials:|| |
|Exam code:||GRA 62921|
|Resit:||Examination when next scheduled course|
Prepare for teaching
Student's own work with learning resources
Group work / Assignments
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.