MBA 2423 Multinational Financial Management

MBA 2423 Multinational Financial Management

Course code: 
MBA 2423
Department: 
Strategy and Entrepreneurship
Credits: 
4
Course coordinator: 
Zhang Xiaorong
Heidi Wiig
Product category: 
Executive
Portfolio: 
MBA China
Semester: 
2020 Autumn
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

The objective of this course is to provide students with an overall understanding of the financial management practices in multinational companies in a dynamic global business world. The course extends investment and financing decisions in corporate finance, however focus more on the adjustments of these decisions because of the additional risks multinational firms are exposed to, namely, foreign exchange risk and political risk, as well as the uneven tax rates in countries that provide room for global tax planning. 

A standard elective course taught in a Chinese business school, this course has a strong China background. Not only does it specifically explain the process and the rationale of RMB exchange rate reform and the forex market in China, but also it presents more examples of Chinese firms in global investing and financing and hedging foreign exchange risks. This course focuses on analytical skills rather than quantitative calculations. However, students should demonstrate that they have fundamental knowledge in Macroeconomics (GDP and inflation) and Corporate Finance (NPV, discount rate, cost of capital, etc.).

Learning outcomes - Knowledge
  • Thorough knowledge of exchange rate regimes, the impossible triangle in international economics and the history of RMB exchange rate reform
  • Understanding of the Purchasing Power Parity and Interest Rate Parity and how they respectively affect multinational firms’ global competitiveness and cost of capital
  • Different types of foreign exchange exposure and basic approaches in managing them
  • Why MNEs should modify the investment, financing and  operational arrangements in a global business environment
Learning outcomes - Skills
  • Ability to identify currency over/undervaluation based on simple PPP
  • Ability to design foreign exchange risk hedging plans for accounts receivable/payable
  • Ability to incorporate FX risk and political risk in assessing overseas investment decision
  • Ability to construct simple SPV structure in MNE’s global tax planning
General Competence
  • Respect for the market competition, corporate governance and business ethnics in a global environment
Course content

Day 1. Lecture

  • What is Special in Multinational Financial Management
  • International Monetary System and the “Impossible Trinity”
  • Chinese Yuan Exchange Rate Regime in the “Impossible Trinity”
  • Purchasing Power Parity and Interest Rate Parity
  • Foreign Exchange Markets and Quotes
     

    Day 2: Lecture and Classroom Case Discussion

  • Classroom Discussion of Case 1
  • RMB Offshore Markets and RMB Internationalization
  • Definition and Categories of Foreign Exchange Exposure
  • Measuring and Managing Transaction Exposure
  • Measuring Economic Exposure
     

    Day 3: Lecture and Classroom Case Discussion

  • Classroom Discussion of Case 2
  • Overview of Global Financing: Bond and Equity Markets
  • Day 4. Lecture and Group Presentations

  • Global tax planning: Transfer Pricing and Tax Inversion
  • Business Ethics in MNEs: FDI and Pollution Exporting to Emerging Markets, Tax Planning and CSR
  • Student Group Presentations
     
  •  
  • Overseas Listing of Chinese Firms:  VIE Structure and the Delisting Wave
  • FDI, Modes of Entry and Access Political Risk in Chinses Firms’ Overseas Investment
  • Multinational Capital Budgeting
  • Mentoring Group Presentations 
Teaching and learning activities

1 ECTS credit corresponds to a workload of 26-30 hours.

The course is 4 days and consists of lectures, classroom case discussions and group presentations, in total 32 hours. The group presentation is to analyze one real company on one specific issue relating to its global investment, financing, operating or risk management.

2 of the teaching hours are dedicated to CSR, ethics, social and environmental issues.

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component will be graded using points on a scale  0 -100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the course. Students who fail to participate in one/some/all exam components will get a lower grade or may fail the course. Candidates may be called in for an oral hearing as a verification/control of written assignments.

Specific information regarding the points system and the mapping scale beyond the information given in the course description will be provided in class. This information may be relevant for requirements for term papers or other hand-ins, and/or where class participation can be one of several elements of the overall evaluation.

Specific Information regarding any aspect of student evaluation will be provided in class. It is the student's responsibility to obtain this information. Please note that whilst attendance is not compulsory, it is the student's 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.

The course is a part of a full MBA and examination in all courses in the MBA programme must be passed in order to obtain a certificate for the MBA degree.

Software tools
No specified computer-based tools are required.
Qualifications

Granted admission to the BI-Fudan MBA programme. Please consult our student regulations.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Activity
Form of assessment:
Class participation
Exam code:
MBA 24231
Grading scale:
China
Grading rules:
-
Resit:
All components must, as a main rule, be retaken during next scheduled course
20No -Individual Individual classroom attendance and participation, counting 20% of the total grade.
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MBA 24231
Grading scale:
China
Grading rules:
-
Resit:
All components must, as a main rule, be retaken during next scheduled course
30No1 Semester(s)Group (1 - 8)Case analysis or class presentation in groups, counts 30% of the total grade.
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
MBA 24231
Grading scale:
China
Grading rules:
-
Resit:
All components must, as a main rule, be retaken during next scheduled course
50Yes2 Hour(s)
  • All printed and handwritten support materials
  • Simple calculator
Individual Written exam, counts 50% of the total grade.
Exams:
Exam category:Activity
Form of assessment:Class participation
Weight:20
Invigilation:No
Grouping (size):Individual
Support materials:
Duration: -
Comment:Individual classroom attendance and participation, counting 20% of the total grade.
Exam code:MBA 24231
Grading scale:China
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:30
Invigilation:No
Grouping (size):Group (1-8)
Support materials:
Duration:1 Semester(s)
Comment:Case analysis or class presentation in groups, counts 30% of the total grade.
Exam code:MBA 24231
Grading scale:China
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:50
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • All printed and handwritten support materials
  • Simple calculator
Duration:2 Hour(s)
Comment:Written exam, counts 50% of the total grade.
Exam code:MBA 24231
Grading scale:China
Resit:All components must, as a main rule, be retaken during next scheduled course
Type of Assessment: 
Continuous assessment
Grading scale: 
ECTS
Total weight: 
100
Student workload
ActivityDurationComment
Teaching on Campus
24 Hour(s)
Prepare for teaching
30 Hour(s)
Student's own work with learning resources
56 Hour(s)
Sum workload: 
110

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 4 ECTS credit corresponds to a workload of at least 110 hours.