The course explores financial decision making in an international framework from the perspective of the management of a multinational corporation. Topics covered include the international financial markets, the measurement and management of exchange risk and political risk, and the financial aspects of the decision to set up cross-border operations.

The course provides a framework for understanding how corporate financial decision making is affected by exchange rate risk, country risk, international taxation, regulations etc. The discussion takes the perspective of the management of a multinational corporation. Topics covered include the international financial markets, the measurement and management of exchange rate risk and political risk, and the financial aspects of the decision to undertake a foreign project, set up cross-border operations and acquire a foreign company.

 

The specific goals of the course are to provide students with (1) a deep knowledge of international capital markets and (2) an analytic framework for understanding cross-border decision making (financing, capital budgeting, valuation) and the impact of factors such as exchange rates on corporate decisions.