• Understand the specific challenges of conducting financial analysis of investment projects in emerging markets and developing country contexts;
• Understand and critically assess methods and tools related to financial analysis of investment projects in emerging market and developing country contexts;
• Know and critically assess main modes of structuring finance of investment projects in emerging markets and developing countries;
• Conduct a financial analysis of concrete investment projects in emerging markets and developing countries, i.e. by assessing how the context influences financial aspects of the investment, by conducting financial appraisals, and by proposing optimal financial structure

Firms are increasingly operating on emerging markets and developing countries. To successfully conduct business projects in such locations, a thorough understanding of financial aspects of the investment project is needed. However, finance in emerging markets and developing countries is in many way different from finance in traditional western markets. 

A highlight of this course is that students will work with a practical approach on real life business cases in close collaboration with the multinational pharmaceutical company Novo Nordisk A/S. This will end up with a final group presentation of work done in class with representatives of Novo Nordisk participating and giving feed-back. This will give a unique insight into real business life in a globally operating company more and more oriented towards emerging markets.

This course is specifically designed to understand financial analysis of investment projects in emerging markets and developing countries. The course will provide students with a deeper understanding of the specific challenges of financial analysis in emerging markets and developing countries as well as with skills for making financial appraisals and proposing financial structuring of investment projects. At the end of the course, students will be able to understand and critically assess financial analysis theories, methods and tools and to conduct financial analysis of concrete investment projects in emerging markets and developing countries. 

More and more, firms from developed countries are setting up business in developing countries and emerging markets as this is where much of market growth takes place and as this is where abundant, often low cost, resources can be accessed. It is essential that these firms have a good understanding of the market, institutional and cultural specificities of emerging markets and developing countries and that these specificities are factored in and accounted for by financial analysis.

Thorough financial analysis is key to any investment project as it structures the business case of the project, formalizes the feasibility assessment, identifies financial sources, calculates the resources needed to managing and organizing project implementation, and anticipates the exit from the project. But while thorough financial analysis is important to all investment projects, it is particularly important to investment projects in emerging markets and developing countries. This is due to the market and currency volatility, weak or non-existent financial intermediaries, lack of market intelligence, and unstable and unpredictable institutions and taxation regimes of such contexts. Hence, compared to financial analysis in developed markets, financial analysis in emerging markets and developing countries needs to a much larger extent to emphasize and take into account the specificities of these types of contexts, for example;

• Country risk
• Institutional frameworks (legislation, institutions, government bodies etc.)
• The resource base (human resources, skills etc.)
• Cultural and language barriers
• Infrastructure (transportation, power etc.)
• International project management
• Currency risks and restrictions
• Risk of cannibalization on other activities of the same firm

A main aim of the course is to understand these challenges and provide students with instruments to understand and analyze them.

Moreover, the course aims to understand how financial analysis can deal with emerging market and developing country specificities and factor them in. The course will work with strategic investment and finance theory in order to come up with qualified investment analysis and financing plans that can be actually used for project planning, investor pitches and negotiations with financing institutions working with and in emerging markets and developing countries. A particularly interesting and valuable tool in this connection is the relatively new area around real options which specifically takes into account uncertainty and risks in projects.

Some of the key financial methods and tools covered through the course are:

• Discounting
• Cash flows
• Net Present Value
• Internal Rate of Return
• Pay Back
• Scenario analysis
• Real options
• Financial and Business Risk analysis
• Equity financing
• Debt financing
• Key Financial Indicators

• Global Competitiveness Index 2019.  
• Hedegaard, Ove and Michael Hedegaard, Strategic Investment and Finance, DJOF Publishing, 2015
• Hedegaard, Michael, Globalisation and the International Economy, DJOF Publishing, 2018.
• IMF, Financial Development Index Database 2018.
• Moffett, Michael H., Arthur I. Stonehill, and David K. Eiteman. Fundamentals of multinational finance. Pearson, 2012.
• Novo Nordisk Case, 2020.
• World Bank, Doing Business: Measuring Business Regulations, http:/​/​www.doingbusiness.org/​