FIN 411 - International Finance

Objectives

This course builds on the foundations laid in International Economics and Financial Management and exposes the student to the world of international finance. The course's major emphasis is on international financial markets, instruments, players, and policies. Foreign exchange operations and their interrelationships with corporate financial management of international operations are also be covered. Particular attention is paid to the analysis of risk exposure in foreign investment and to the categories of instruments that can be used to manage or hedge risk.

Upon completion of the course, the students will be able to:

• Understand the nature, magnitude, and importance of international finance in worldwide trade, investment, and economic growth,
  
• analyze risk exposure in foreign investment,
  
• select the appropriate instruments to manage risk exposure in foreign investment,
  
• identify and formulate international investment strategies for the multinational enterprise,
  
• demonstrate how foreign currency and repatriation of capital rules influence the international capital budgeting decision,
  
• identify the instruments and methodology that can be used to construct a globally diversified investment portfolio.

Content

• Foreign Exchange Markets
  
• Balance of Payments
  
• Balance of Payments Accounts
  
• Coping with a Current Account Deficit
  
• Parity Conditions in International Finance
  
• Purchasing Power Parity
  
• Interest Rate Parity
  
• Derivative Markets and Instruments
  
• Forward Markets and Contracts
  
• Option Markets and Contracts
  
• Swap Markets and Contracts
  
• Risk Management Applications of Option Strategies for International Transactions and Investments
  
• Global Equity Markets and Instruments
  
• Equity Evaluation Concepts and Techniques
  
• Global Bond Investing
  
• Alternative Investments
  
• Global Diversification Strategies
  
• Corporate Strategy and Foreign Investment