24 June 2016
on course website
HEC Paris Summer School: International Finance
As we enter the third millennium, information technology - by crushing the cost of communications - is accelerating the globalization of manufacturing, commerce and especially finance. News travelling at the speed of light through the internet reaches an estimated 250,000 computer terminals in trading rooms around the world, morphing national financial markets into one huge efficient global marketplace for capital. And yet diehard sovereigns are holding firm onto their prerogatives of having a national currency, a national regulatory framework and a national tax code of their own and much more. International business’ vastly expanded global reach is redefining the risks and opportunities faced by financial executives whether they are at the helm of international trading firms, old fashioned brick-and-mortar multinational corporations à la IBM, Nestlé or Toyota or “virtual” multinational enterprises à la Google or Facebook.
This introductory course is about key decisions made by treasurers or chief financial officers of exporting firms, multinational corporations and financial institutions. It does not require prior finance training. Specifically, it addresses the funding/financing and investment questions within a multi-currency setting. Special attention is devoted to Risk Management (including valuation of hedging instruments such as forwards, futures, swaps and options) as it permeates international funding and investment decisions.
Laurent L. Jacque, Academic Director
The intensive summer program is designed for students aspiring to careers in finance at large and small corporations with extensive international dealings, banks, pension funds, private equity firms or hedge funds as well as "globally reaching" financial institutions.
Upon successful completion of the summer program, participants will be able to understand:
The international monetary system and how exchange rates are set with special reference to the subprime and the euro crisis;
Interest Rate Arbitrage and the “carry trade” or how money managers can compare the yield on short term investments denominated in different currencies such as the US dollar, the Japanese yen, the Swiss franc, the euro etc…and how corporate treasurers can compare the cost of financing sourced from different currencies;
The dynamics of global capital markets and how debt or equity financing is no different from any other procurement decision except that when it is international, it only means there are far more financing sources to choose from;
What is at risk in international business and how firms develop risk-management frameworks within which currency risk can be hedged with derivatives such as forwards, futures, options and swaps;
How to value cross-border mergers & acquisitions or simply foreign direct investment.
EUR 2370: Deadline 30th April. Includes;
weekend bus transportation during the program from campus to downtown Paris
EUR 4380: Price for two courses
on course website