Course content
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 country and 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. Fourth, we investigate the recent developments in sustainable finance, and introduce students to the challenges entrepreneurial firms face when raising capital. 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 the class
Class 2: Managing country risk
Class 3: International capital budgeting
Class 4: International currency markets and hedging
Class 5: Global sustainable finance
Class 6: Guest lecture
Class 7: Feedback activity - mock exam
Class 8: Taxation and reporting in the multinational firm
Class 9: Capital structure in the multinational firm
Class 10: Entrepeneurial finance in international capital markets
Class 11: Real options, joint ventures, and international M&A
Class 12: Project finance
Class 13: Course summary and exam preparation
See course description in course catalogue