Global Finance

Course Description

This course examines financial issues in the global environment from the perspective of both domestic and multinational organizations. Students will analyze the international business environment and will apply financial concepts and practices to a global market to maximize value. They will use financial concepts to make informed international investment and financing decisions, including those involving e-business and technology. Areas of emphasis include: the environment of global finance, foreign exchange and derivatives markets, global risk management, financing foreign operations, and foreign investments.

Topics and Objectives

Environment of Global Finance

• Identify international finance risk factors.
• Explain the drivers and consequences of globalization.
• Describe the stages of organizational evolution into global entities.
• Relate the international flow of goods, services, and capital to the balance of payments and domestic economic behavior.
• Calculate the amount of appreciation or depreciation associated with a given exchange rate change.

Foreign Exchange and Derivatives Markets

• Analyze the impact of the foreign exchange and derivatives markets.
• Identify international parity conditions.
• Assess international arbitrage opportunities.

Global Risk Management

• Conduct an initial country risk analysis to support an international investment decision.
• Use currency derivatives to speculate or hedge in the foreign exchange market.

Financing Foreign Operations

• Make financial decisions using foreign exchange and interest rate data.
• Identify capital sources unique to global finance.
• Determine appropriate capital sources for international investment.
• Recommend an optimal financing strategy for an international operation.
• Make foreign investment decisions using short-term cash management.
• Modify investment strategies based on changing global risk factors.

Foreign Investments

• Make a direct foreign investment decision.