INTERNATIONAL FINANCIAL MANAGEMENT

About

The globalization of trade and finance as a consequence of the great advances in information technologies, transportation, and communications, during the last century, has introduced a dramatic new commercial reality for the world citizens. This transformation of the world market economy, has important implications for business, which we will analyze in this course.
Students will be able to examine the trade theories, policies, and instruments of international commerce and finance, as well as consider trade integration. Course content also focuses on the foreign exchange markets and the balance of payments and institutions of international trade. Macro policies in open economies, such as flexible exchange rates and the nature of foreign exchange markets, risk and hedging transactions will be examined. Theories and policies of foreign direct investment and political risk are also considered.

Course leader

Professor Mohamed Azzim and Professor Szabolcs Sebestyén

Target group

Bachelor and Master students

Course aim

At the end of the course the student should be able to:
• To understand the nature and benefits of the internationalization of business and describe the general
importance of international financial management
• The student understands the main concepts of international finance and can apply them to personal
interactions, business management issues and international transactions
• The student can describe the economic incidence of changes in the international trade flows, both
within and across countries and economic areas.
• The student can predict the effect of a change in international transactions on flexible exchange rates
• The student can explain exchange rates quotations, cross rates and spot and forward markets
• The student can use Purchasing Power Parity and Interest Rate Parity to describe appropriately, undervalue and over-value exchange rates
• The student can explain how forward contracts and financial derivatives can be used to deal with foreign
exchange risk
• To understand the motivations for foreign direct investment and the evolution of the multinational
corporation. The student also will be able to assess the political risk and value of foreign investments in
different countries

Fee info

When students enroll in multiple courses, they receive 10% off (2 courses), 20% off (3 courses), and 25% off (4 courses)—meaning that if they enroll in four courses, one fee is waived.