• The student should be able to outline what goes on in the global macro economy and in the financial markets and furthermore discuss how these developments affect businesses and government policies
• The student should be familiar with major historic international payments systems and be able to explain how these systems affect businesses, investors and governments
• The student should be familiar with the most fundamental theories of exchange rate behavior and be able to explain the key factors that drive exchange rates
• The student should be able to explain how companies through the use of hedging techniques (forwards, futures, options and swaps) can manage financial risks
• The student should be able to explain the notion of value investing and outline the strengths and weaknesses within an international context

The course first outlines current macro and financial market trends within a historical context that enables students to get a proper perspective on the current financial crisis and the global recession. Then the course presents a menu of useful early warning signals and leading indicators that companies use in their risk management. Subsequently follows a presentation of different theories that seek to explain key developments in currency markets in particular. How multinational companies can manage these currency market movements, including upside and downside risks, is the next topic. In this context we also present and discuss various ways of hedging risks including futures, options and swap contracts.

Moffett, Stonehill, and Eiteman (2006). Fundamentals of Multinational Finance, 2nd Edition. Addison-Wesley.
Yamarone, Richard (2004). The Trader's Guide to Key Economic Indicators. Bloomberg.
Risager, Ole. Investing in Value Stocks. McGraw-Hill, forthcoming November 2009.