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2013/2014  BA-HA_E61  Issues in International Finance

English Title
Issues in International Finance

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Course period Spring, Third Quarter
Time Table Please see course schedule at e-Campus
Max. participants 60
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Bjarne Florentsen - Department of Finance (FI)
Secretary Marianne Andersen - ma.fi@cbs.dk
Main academic disciplines
  • Globalization, International Business, markets and studies
  • Political leadership, public management and international politics
  • Corporate and Business Strategy
  • Economics, macro economics and managerial economics
Last updated on 11-11-2013
Learning objectives
  • To master the basic theories of international finance at the textbook level
  • To understand the structure and dynamics of the international financial system
  • To understand the challenges of Multinational Business and apply correctly the analytical tools that lead to basic decision-making
  • To structure a complex and practical problem in a business situation and assess alternative solutions and their consequences
  • To understand the main trends in international political behavior under changing economic parameters and environments
Course prerequisites
Students must have passed a course with minimum ETCS 7,5 in Corporate Finance/Financial Mangement. In addition students shuld have a good knowledge of main macro-economic relations. Students are expected to follow international financial news on a current basis.
Examination
4 hour written sit-in exam:
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Autumn Term and Spring Term
Aids allowed to bring to the exam Limited aids, see the list below and the exam plan/guidelines for further information:
  • Aids to be decided
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content and structure

The course has a practical orientation based on the understanding of the fundamental theories of international finance. The objective is to provide students with a good understanding of the international financial markets in which the multinational company operates and how to manage the risks and take advantage of the opportunities inherent in international financial activity.

Central concepts are exchange rates, international interest rates, their determination through international parities and how to handle the exposures that international transactions of companies involve. Topics concerning international debt and security issues will be discussed as well as strategies for foreign direct investment and their management.

Theoretical concepts form the structure of the understanding of the management of multinational firms, and these concepts should be thoroughly understood. But the course will strive to emphasize the application of theory to real world cases and examples, including the political, institutional, and cultural dimensions, the divergences of which are often central to the decision-making of the international company.

The course emphasized sound reasoning and argumentation based on computational skills and understanding of complex problems.
Teaching methods
There will be lectures and exercises. In addition, students should hand in two problem sets, which aim at exploring the course material in greater depth. Although the problem sets and the solving of exercises in preparation for class are voluntary, they are strongly recommended as preparation for the final exam.
Students will find that lecture attendance and prior preparation are prerequisites for successful completion of the course.
Expected literature

Indicative textbook:

David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett, Multinational Business Finance, 13th ed., Pearson International, 2012.

Selected articles and hand-outs
Last updated on 11-11-2013