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2016/2017  KAN-CCMVI2046U  Graduate International Finance

English Title
Graduate International Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 80
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Course instructor - Thomas Lindner, PhD, Assistant Professor, WU Vienna, tli.acc@cbs.dk
    Sven Bislev - Department of Management, Society and Communication (MSC)
In case of any academic questions related to the course, please contact the course instructor or the academic director, Sven Bislev at sb.ikl@cbs.dk
Main academic disciplines
  • Finance
  • Globalization and international business
Last updated on 29/05/2017
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: This course prepares students for careers in international companies. Students learn:
  • to read and understand academic research in the fields of international strategy and finance
  • how to evaluate projects in foreign countries
  • how to manage exposure to country risk
  • how to design international corporate structure to maximize firm value
  • what challenges firms face when issuing capital abroad
  • what the options and their consequences for international investment are
  • how firms can finance foreign expansion
  • ow to manage exposure to currency risk
Course prerequisites
Fundamentals of Finance, Fundamentals of Mathematics
Examination
Graduate International Finance:
Exam ECTS 7.5
Examination form Written sit-in exam
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: End of July - beginning of August 2017.

Retake exam: End of September - beginning of October 2017.

3rd attempt (2nd retake) exam: End November - beginning of December 2017.

Exam schedule is available on http://www.cbs.dk/summer http:/​/​www.cbs.dk/​uddannelse/​summer-university-programme/​exam.
Aids allowed to bring to the exam Closed book: no aids
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.
4 hour written sit-in exam, new exam question
Exam form for 3rd attempt (2nd retake): 72 hours home project assignment, max. 10 pages.
Course content and structure

This course introduces students to the challenges and opportunities firms face in international financial markets. The course investigates how firms can manage exposure to different forms of risk resulting from international operations. First, we look into currency markets and develop tools firms can use to manage exposure to several currencies. We also look into opportunities this provides for the diversification of risk and how exposure to foreign currencies has consequences for firm strategy. Second, we investigate how firms can navigate different tax and institutional regimes to optimize capital structure and the allocation of profits to business units. Third, we look at the integration of capital markets and challenges firm face when issuing securities abroad. Finally, the course covers means of valuing and managing investments in foreign currencies. Taken together, the course is designed to prepare students to answer questions about strategic implications of internationalization using tools based on financial analysis. Instruction materials, cases, and academic articles are combined to deliver a research element and an element of practical application in the course.

 

Class 1: Introduction to international finance and country risk

Class 2: The international monetary system and exchange markets

Class 3: Currency futures and currency options

Class 4: Managing exposure to currency risk

Class 5: International capital budgeting

Class 6: Taxes and capital structure in the multinational firm

feedback activity: In-class quiz and discussion of answers

Class 7: International capital issues and capital markets

Class 8: Real options, joint ventures, and international M&A

Class 9: Project finance

Class 10: Case study on international capital budgeting

Class 11: Course wrap-up and exam preparation

 
Teaching methods
Instructor presentation, discussion of academic papers, case study, student discussion, in-class quizzes (non-graded)
Student workload
Preliminary assignment 10 hours
Classroom attendance 33 hours
Preparation 144 hours
Feedback activity 7 hours
Examination 12 hours
Further Information

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.

 

Feedback Activity: A feedback activity defined by the course instructor will take place approx. half-way through the course.

 

Course timetable is available on http://www.cbs.dk/uddannelse/summer-university-programme/courses.
Expected literature

Must-have:

Adrian Buckley: International Finance; A practical perspective

Pearson Higher Education, 2012

 

Kirt C Butler: Multinational finance: evaluating opportunities, costs, and risks of operations

Wiley, 6th edition

 

Nice-to-have:

Piet Sercu: International Finance: Theory into Practice

Princeton University Press, 2009
Last updated on 29/05/2017