GRA 6292 International Corporate Finance

GRA 6292 International Corporate Finance

Course code: 
GRA 6292
Department: 
Finance
Credits: 
6
Course coordinator: 
Roberto Tubaldi
Course name in Norwegian: 
International Corporate Finance
Product category: 
Master
Portfolio: 
MSc in Law and Business
Semester: 
2023 Autumn
Active status: 
Active
Level of study: 
Master
Teaching language: 
English
Course type: 
One semester
Introduction

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. 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. Particular stress will be put on making corporate finance decisions in a multinational firm when sustainability and climate risks are also taken into account.

Learning outcomes - Knowledge

The candidate:

  • 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
Learning outcomes - Skills

The candidate:

  • 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
General Competence

The candidate:

  • 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
Course content
  1. Basics of Exchange Rate Determination
    1. The Multinational Firm and the International Monetary System
    2. The Foreign Exchange Market – Triangular Arbitrage
    3. The Foreign Exchange Market - Parity Relations
  2.  Hedging foreign-exchange risk
    1. Forwards and futures
    2. Currency options
    3. Swaps
  3. Financial management of the multinational firm
    1. Foreign exchange exposure and management
    2. Foreign direct investment and cross-border acquisitions
    3. International capital structure and the cost of capital
    4. International capital budgeting
    5. Multinational cash management
    6. International trade finance
    7. International tax environment and transfer pricing
    1. Special topic in International Corporate Finance

    Teaching and learning activities

    The course will include a combination of lectures, assignments, case studies, analysis of newspaper articles and academic papers, and self-study.

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

    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.

    Qualifications

    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 specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

    Disclaimer

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

     

    Required prerequisite knowledge

    General finance courses. Good knowledge of basic statistical concepts (mean, variance, linear regression) is also helpful.

    Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
    Exam category:
    Submission
    Form of assessment:
    Written submission
    Exam code:
    GRA 62921
    Grading scale:
    ECTS
    Grading rules:
    Internal examiner
    Resit:
    Examination when next scheduled course
    100Yes3 Hour(s)
    • BI-approved exam calculator
    • Simple calculator
    • Bilingual dictionary
    Individual
    Exams:
    Exam category:Submission
    Form of assessment:Written submission
    Weight:100
    Invigilation:Yes
    Grouping (size):Individual
    Support materials:
    • BI-approved exam calculator
    • Simple calculator
    • Bilingual dictionary
    Duration:3 Hour(s)
    Comment:
    Exam code: GRA 62921
    Grading scale:ECTS
    Resit:Examination when next scheduled course
    Type of Assessment: 
    Ordinary examination
    Total weight: 
    100
    Student workload
    ActivityDurationComment
    Prepare for teaching
    6 Hour(s)
    Case preparation.
    Student's own work with learning resources
    85 Hour(s)
    Includes preparation for class.
    Group work / Assignments
    30 Hour(s)
    Teaching
    36 Hour(s)
    Including case presentations.
    Examination
    3 Hour(s)
    Sum workload: 
    160

    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.