This graduate course examines the same topics as FIN 550, but with greater breadth, in greater depth, and with additional assignments. It is an introduction to the international dimensions of corporate financing, investment, and risk management decisions. Topics include foreign exchange markets, international financial systems, foreign exchange rate determination, currency risk, spot and forward rates, hedging, international monetary and trade flows, multinational capital budgeting, and cost of capital in emerging economies.
- Understand how the international monetary system has evolved and discuss the pros and cons of alternative exchange rate regimes.
- Understand international parity relationships and how exchange rates are determined.
- Assess the foreign exchange exposure of a corporation and evaluate alternatives to manage the exposure.
- Analyze corporate investment decisions in an international context.
- Analyze corporate financing choices and capital structure decisions in an international context.