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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
Product category: 
Bachelor
Portfolio: 
BBA - Specialisation in International Business
Semester: 
2019 Autumn
Active status: 
Active
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.

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component is graded by using points on a scale from 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 examination code (course). Students who fail to participate in one/some/all exam elements will get a lower grade or may fail the course. You will find detailed information about the point system and the cut off points with reference to the letter grades when the course start.

At re-sit all exam components must, as a main rule, be retaken during next scheduled course.

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

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.

Required prerequisite knowledge

An undergraduate course in Corporate Finance.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
EXC36111
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No1 Week(s)Individual
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
EXC36111
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No 1 Week(s)Individual
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
EXC36111
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
10No1 Week(s)Individual
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
EXC36111
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
70Yes2 Hour(s)
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
  • Interest table
Individual
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):Individual
Support materials:
Duration:1 Week(s)
Comment:
Exam code: EXC36111
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):Individual
Support materials:
Duration: 1 Week(s)
Comment:
Exam code: EXC36111
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:10
Invigilation:No
Grouping (size):Individual
Support materials:
Duration:1 Week(s)
Comment:
Exam code: EXC36111
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:70
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • BI-approved exam calculator
  • Simple calculator
  • Bilingual dictionary
  • Interest table
Duration:2 Hour(s)
Comment:
Exam code: EXC36111
Grading scale:Point scale
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
Workload activityDurationType of durationComment student effort
Teaching39Hour(s)
Review of assignments in plenary6Hour(s)
Prepare for teaching110Hour(s)
Self study45Hour(s) Preparation for the final exam
Expected student effort:
Workload activity:Teaching
Duration:39 Hour(s)
Comment:
Workload activity:Review of assignments in plenary
Duration:6 Hour(s)
Comment:
Workload activity:Prepare for teaching
Duration:110 Hour(s)
Comment:
Workload activity:Self study
Duration:45 Hour(s)
Comment: Preparation for the final exam
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.