Faculty
Lars Kolte

Course Coordinator
Bjarne Florentsen

Students should have a good knowledge of finance theory, microeconomics as well as main economic relations. Students without these prerequisites must expect an extra workload.

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.

analytical skills, factual argumentation, economic rationale and widening of vision of the world, group work

Thorough understanding of the Multinational Enterprise’s parameters and decision-making basis in international finance as well as a good understanding of the international financial system and how it works

4 hr. Written PC exam, open book, with print

David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett, Multinational Business Finance, 12th ed., Pearson International, 2010.

Selected articles and hand-outs