International Finance - Study guide

This course introduces students to the theory and practice of international finance and equips them with insights of financial management when leading and managing an international firm. A central learning goal is to understand how exchange rates are determined and how financial managers cope with the risks that fluctuations in exchange rates create. Upon completion of the course, the student
• masters main tools and methods for analyzing how firms can settle international transactions and manage their risk positions in international business.
•can critically discuss the challenges and develop strategies of firms going international
•understands the role of international capital markets and financial intermediation in the global economy.
•is able to study complex international economic phenomena further.

The student has successfully completed Basic study modules, at least 1. Liiketoimintaosaaja, 4. Tuloksen tekijä, 5. Growing global and FINA Specialization module 1 (Johdatus finanssialalle).

• The global financial environment, markets and organisations, multinational enterprises
• The international monetary system and international business transactions
• Foreign exchange rates and quotations
• Foreign exchange theory and markets
• Foreign exchange exposure
• International investment
• International capital budgeting
• Managing multinational operations

• The student is acquainted with the nature of international business.
• He/she understands the operations of foreign exchange markets.
• The student is familiar with some of the theories and evidence on exchange rate relationships.
• The student knows how international companies that deal in foreign currencies list foreign assets on their balance sheets and how they deal with related exchange rate risk.
• Is aware of the challenges in investing abroad and offered payment times
• The student can perform basic analysis on the risks and opportunities associated with various forms of internationalization
• Knows how a firm can hedge currency risk in various situations.

The student:
• is familiar with the history of the international monetary system.
• understands the functioning of various types of exchange rate regimes.
• can explain the processes related to foreign investment and project finance in detail
• can detail the sources of risks that arise in international financial markets, and how these risks can be managed
• can explain central theories related to foreign exchange markets and analyse how well these are supported by data
• is able to measure and make management decisions on foreign exchange exposure
• knows how to approach problems related to exchange rate-, ecoomic- and translation risk

The student:
• has a good understanding of the global economic environment.
• knows how some economic models are applied to real world problems
• is aware of important and recent multinational financial challenges
• can make an assessment on how cultural, legal, political and institutional differences affect a firm’s choice of financial goals and corporate governance
• can evaluate the financial performance of a foreign subsidiary of a multinational enterprise
• knows how to evaluate foreign investment decisions

A mixture of contact hours and self-study. The course blends theory with the analysis of financial data and practical cases. Potential team assignments organized around real-world cases.
Potential guest lectures
Assessment of one's own learning 1 h

Eiteman, D.K., Stonehill, A.I. and M.H. Moffett (2010). Multinational Business Finance, 12th global edition or newer. Pearson Education Inc, Prentice Hall.
Lecture notes and other material instructed by the teacher.

Pasila Campus

English

23.10.2023 - 15.12.2023

12.06.2023 - 20.10.2023

CONTACT
LF6PACC
LK5PA
EXCH

Mika Mustikainen

15 - 45

FINA Degree Programme in Finance and Economics

0.00 cr

H-5