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2020/2021  BA-BHAAV6089U  Undergraduate International Finance

English Title
Undergraduate International Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Quarter
Start time of the course Autumn, First Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 100
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Carsten Sørensen - Department of Finance (FI)
For academic questions related to the course, please contact instructor Thomas Lindner at tli.acc@cbs.dk
Main academic disciplines
  • Corporate governance
  • Finance
  • Globalisation and international business
Teaching methods
  • Online teaching
Last updated on 08-06-2020

Relevant links

Learning objectives
This course prepares students for careers in international companies. Students learn:
  • how to evaluate projects in foreign countries
  • how to manage exposure to currency risk
  • 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
Course prerequisites
Fundamentals of Finance, Fundamentals of Mathematics
Undergraduate International Finance:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Please see text below
4 hour home assignment. No requirement for maximum number of pages
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Autumn
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content, structure and pedagogical approach

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.


Preliminary assignment: read Agmon (2006)
Class 1: Introduction to international finance and country risk
Class 2: International capital budgeting
Class 3: Case study on international capital budgeting (I)
Class 4: Case study on international capital budgeting (II)
Class 5: Case study on international capital budgeting evaluation and discussion
Class 6: International currency markets and hedging
feedback activity: In-class quiz and discussion of answers
Class 7: Taxes and capital structure in the multinational firm
Class 8: Real options, joint ventures, and international M&A
Class 9: Project finance
Class 10: Case study on international capital budgeting
Class 11: Exam preparation and Q&A



Description of the teaching methods
Instructor presentation, case study, student discussion, in-class quizzes (non-graded)
Feedback during the teaching period
Students will have the chance to see their progress in a mock-exam. A Q&A session will help clarify remaining questions on the first half of the course.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Expected literature

Mandatory readings:


Case: Globalizing the Cost of Capital and Capital Budgeting at AES (HBS case: https:/​/​hbsp.harvard.edu/​product/​204109-PDF-ENG?itemFindingMethod=Search).

Agmon, T. (2006). Bringing financial economics into international business research: Taking advantage of a paradigm change. Journal of International Business Studies, 37(5), 575-577.



Additional relevant readings:


Chapters 17, 18, and 22 in Sercu, P. (2009). International finance: Theory into practice. Princeton University Press.

Chapters 19-25 in Buckley, A. (2012). Multinational finance. Pearson Education.

Chapters 2-6,12, 14-16 in Butler, K. C. (2016). Multinational Finance: Evaluating the Opportunities, Costs, and Risks of Multinational Operations. John Wiley & Sons.

Chapters 1, and 2 in Gatti, S. (2012). Project finance in theory and practice: designing, structuring, and financing private and public projects. Academic Press.


Last updated on 08-06-2020