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2012/2013  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 Autumn, Spring
Spring schedule:
Monday 11.40-14.25, week 5-11
Wednesday 10.45-13.20, week 5-8,10-11.
Wednesday 13.30-16.05, week 9.


changes may occur.
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
Secretary Marianne Andersen - ma.fi@cbs.dk
Main Category of the Course
  • 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 21-03-2013
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 analystical 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 parameteres and invironments
Prerequisite
Students should have a good knowledge of finance theory, microeconomics as well as main macro-economic relations. Students are expected to follow financial news on a current basis. Students without these prerequisites must expect an extra workload.
Examination
4 hour open book exam
4 hour open book exam:
Type of test Written Exam
Marking scale 7-step scale
Second examiner No second examiner
Exam period Autumn Term and Spring Term, Autumn 2012 exam in week 49
Spring 2013 exam in week 12
Aids Open Book, Written and Electronic Aid is permitted
Duration 4 Hours
The exam is PC-based with no internet access. It is also possible to write in hand.
Assessment is based on 7-point grading scale.
Examination
The exam is a 4 hour written, open book exam. The exam is CBS PC-based with no internet access. It is also possible to write in hand.

The make-up/re-exam will be held in the same way and with the same conditions as the ordinary exam.
Course content

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, 12th ed., Pearson International, 2010.

Selected articles and hand-outs
Last updated on 21-03-2013