International Financial Management

It is not possible to register for the course 32ME-P-IFMN-01 if the student is concurrently registered for or has already completed the course G63E1302 (mutually exclusive courses).

During a review of study plans, the course G63E1302 can be substituted for the course 32ME-P-IFMN-01.

Garant předmětu:

Aliya Algozhina

Lecturer:

Aliya Algozhina

Tutor:

Aliya Algozhina

Supervisor:

Institute of Economic Studies

Synopsis:

This course provides concepts related to financial management of any multinational company functioning in several countries and thus dealing with exchange rate and interest rate risks. The hedging strategies against those risks are covered via money market and financial derivatives such as forwards, futures, options, and swaps. Profitable situations in the foreign exchange market are also described using locational arbitrage, triangle arbitrage, and covered interest arbitrage. Operational aspects of managing financially a multinational company are presented as well. The main textbook is Eun, Resnick, and Chuluun (2021), yet Madura and Fox (2020) can be also read for this course. There will be lectures and exercise sessions, where different problem sets based on lecture materials are solved together in class.

Requirements:

Midterm and non-cumulative final exams count for 40% each of grade. Individual or group ten-minute presentation of students (up to three people), on any subject of this course, counts for the next 20%. Students have a chance to improve their grades by earning additional ten points (max) through a written submission of solutions to problems covered in one of the exercise sessions of their choice. Attendance at classes is expected to pass successfully the course.

Syllabus of lectures:

The foreign exchange market and currency derivatives

•Spot and forward markets for foreign exchange

•International parity relationships

•Futures and options on foreign exchange

•Interest rate and currency swaps

Foreign exchange exposure

•Management of transaction exposure

•Management of economic exposure

•Management of translation exposure

Financial management of a multinational firm

•Foreign direct investment and cost of capital

•International capital budgeting and cash management

•International trade finance

•International tax environment and transfer pricing

Syllabus of tutorials:

There are exercises and problem sets solved together in class on each topic of lectures.

Study Objective:

The main goal is to equip students with knowledge of how financial derivatives work in the foreign exchange market and can be used for managing risks faced by a multinational firm.

Study materials:

1) Eun, C. S., Resnick, B. G., & Chuluun, T. (2021). International financial management. New York: McGrew Hill, 1-568.

2) Madura, J., and Fox, R. (2020). International financial management. England, Andover: Cengage Learning, 1-658.

Note:

Time-table for winter semester 2023/2024:

	06:00–08:0008:00–10:0010:00–12:0012:00–14:0014:00–16:0016:00–18:0018:00–20:0020:00–22:0022:00–24:00
Mon
Tue
Wed	roomDEJ:421 12:30–14:00 (lecture parallel1) Dejvice UčebnaroomDEJ:421 14:15–15:45 (parallel nr.101) Dejvice Učebna
Thu
Fri

Time-table for summer semester 2023/2024:

Time-table is not available yet

The course is a part of the following study plans: