Prof. Dr. Schellberg – International Financial Management
1.Coursename
InternationalFinancialManagement
2.Faculty
BusinessLaw
3.Instructor
Prof.Dr.BernhardSchellberg
4.Students
LL.M.
5.Credithours
3credit-course(30hoursintotal)
6.Courseassessment
Finalexamintheformofatest(60min.)
7.Teachinglanguage
English
8.Objectives
MultinationalCorporations(MNCs)continuetoexpandtheiroperationsglobally.
Thisprocesshasmanycausesandimplications,butitiswidelyacceptedthatfinance
isthedimensioninwhichismastadvanced.Anunderstandingofglobalfinancial
marketsiscriticalformanaginganinternationalbusiness,aportfoliooffinancial
instruments,orevenanewdomesticbusinessexposedtointernationalcompetition.
Thiscourseisdesignedtogiveaworkingknowledgeofthemostessential
componentsofinternationalfinancialmanagement,focusingoninternational
financialmarkets,institutions,andinstruments.
InternationalFinancialManagementisdesignedasanintroductorycourse.The
courseInternationalFinancialManagementpresumesanunderstandingofbasic
corporatefinance.However,thecoursereviewsthebasicfinanceconceptsbeforeI
extendtothemultinationalcase.
Theaimistohelpyouunderstandthenatureofinternationalfinancialmanagement.
Thecoursefocusesonunderstandingoftheforeignexchangemarketsandworld
capitalmarkets(banking,debt,andequity)tocarryoutaneffectivemanagementof
thefirm.SinceMNCsfaceopportunitiesbutalsorisks,financialmanagement
involvesthedesignofappropriatestrategiestohedgerisks.
Thecourseoffersanintuitiveandrealworldgraspofconceptsandissuesin
internationalfinance.Awealthofexamplesisprovidedtoenablethestudentsto
seethesubjecttobusiness,mostlyfromamultinationalcorporation.
9.CourseSyllabus
I. GlobalFinanceEnvironment
a. Multinationalcorporations,globalmarketparticipants,international
goodsmarkets(1hour)
b. Internationalfinancialmarkets(1hour)
c. Globalizationasariskfactor,benefitsofinternationaltrade(1hour)
d. Comparativeadvantage(1hour)
e. Balanceofpaymentsaccounting,internationalcapitalflows(1hour)
f. Thedeterminationofglobalratesofreturn(1hour)
II. ForeignExchangeTheoryandMarkets
a. Bid-askspreads(1hour)
b. Marketstructure(1hour)
c. Triangulararbitrage(1hour)
d. Realexchangerates(1hour)
e. Exchangeratesystems,whatisacurrency,(1hour)
f. Theroleofcentralbanks(1hour)
III. ForeignExchangeExposure
a. Hedgingwithexchangeforwards(6hours)
b. Exchangerateswaps,and(3hours)
c. Exchangeratefutures(3hours)
IV. FinancingtheGlobalFirm(Sourcingequityglobally,sourcingdebtglobally)(2
hours)
V. ForeignInvestmentDecisions(Internationalportfoliotheoryand
diversification,foreigndirectinvestmenttheoryandpoliticalrisk,
multinationalcapitalbudgeting)(2hours)
VI. ManagingMultinationalOperations(Multinationaltaxmanagement,working
capitalmanagement)(2hours)
10.Textbooks
Ø Bruner,RobertF.:CaseStudiesinFinance,Boston.
Ø Desai,MihirA.:InternationalFinance,Hoboken.
Ø Eiteman,DavidK./Stonehill,ArthurI./Moffet,MichaelH./Multinational
BusinessFinance,Boston.
Ø Erhardt,MichaelC./Brigham,EugeneF.:FinancialManagement.
Ø Eun,CheolS./Resnick,BruceG.:InternationalFinancialManagement,Boston.
Ø Levi,MauriceD.:InternationalFinance,London.
Ø Madura,Jeff/Fox,Roland:InternationalFinancialManagement,London.
Ø Moffet,MichaelH./Stonehill,ArthurI./Eiteman,DavidK.:Fundamentalsof
MultinationalFinance,Boston.