Overview
Introduction to multinational enterprise and financial management including operation of foreign exchange markets, methods of hedging foreign exchange risks, overseas financing and investment decisions and international working capital management.
Domestic and Multinational Corporations (MNCs) are operating in an increasingly competitive global environment. Firm value maximisation involves international investing and financing decisions. Firms are exposed to international competition and Financial Managers need to understand currency risk and how international financial markets operate. This course aims to provide students with an in-depth knowledge of: (1) international financial markets, (2) determinants of exchange rates, (3) currency derivatives, (4) international arbitrage and interest rate parity, and (5) exchange rate risk management.
About this paper
| Paper title | International Financial Management |
|---|---|
| Subject | Finance |
| EFTS | 0.15 |
| Points | 18 points |
| Teaching period | Semester 1 (On campus) |
| Domestic Tuition Fees ( NZD ) | $1,053.30 |
| International Tuition Fees | Tuition Fees for international students are elsewhere on this website. |
- Prerequisite
- One of ACCT 233 or ACFI 201 or FINC 206
- Restriction
- ACFI 305
- Schedule C
- Commerce
- Contact
- Teaching staff
- Paper Structure
- This paper aims at providing students with an in-depth knowledge of international finance issues. Five interrelated topics are covered:
- Exchange rate risk
- Determinants of exchange rates
- Currency hedging
- International financing/investing activities
- International financial markets
- Teaching Arrangements
- This paper is taught through lectures and seminars.
- Textbooks
Madura, Jeff. International Financial Management. (Cengage Learning, 2020) ISBN 9780357130544 (14th edition)
- Course outline
- View the most recent Course Outline
- Graduate Attributes Emphasised
- Communication, Critical thinking, Self-motivation.
View more information about Otago's graduate attributes. - Learning Outcomes
Students who successfully complete this paper will be able to:
- Demonstrate understanding of international financial theory and pertinent applications (e.g. exchange rate determinants, foreign exchange exposure, foreign direct investment, interest rate parity, and the balance of payment)
- Develop a frame of reference through which to identify, evaluate and solve problems pertaining to international financial theory
- Develop critical and analytical skills and the ability to work independently
- Demonstrate communication and written skills
- Assessment details
Assignment 1 (15%)
Mid-Term exam (15%)
MNC project and presentation (6% to individual presentation and 14% to the group presentation = 20%)
Final exam (50%)
Overview
Introduction to multinational enterprise and financial management including operation of foreign exchange markets, methods of hedging foreign exchange risks, overseas financing and investment decisions and international working capital management.
Domestic and Multinational Corporations (MNCs) are operating in an increasingly competitive global environment. Firm value maximisation involves international investing and financing decisions. Firms are exposed to international competition and financial managers need to understand currency risk and how international financial markets operate.
About this paper
| Paper title | International Financial Management |
|---|---|
| Subject | Finance |
| EFTS | 0.15 |
| Points | 18 points |
| Teaching period | Semester 1 (On campus) |
| Domestic Tuition Fees | Tuition Fees for 2027 have not yet been set |
| International Tuition Fees | Tuition Fees for international students are elsewhere on this website. |
- Prerequisite
- One of ACCT 233 or ACFI 201 or FINC 206
- Restriction
- ACFI 305
- Schedule C
- Commerce
- Contact
- Teaching staff
- Paper Structure
- This paper aims at providing students with an in-depth knowledge of international finance issues. Five interrelated topics are covered:
- Exchange rate risk
- Determinants of exchange rates
- Currency hedging
- International financing/investing activities
- International financial markets
- Teaching Arrangements
This paper is taught through lectures and seminars.
- Textbooks
Madura, J. (2020). International Financial Management (14th ed.). Cengage Learning. ISBN 9780357130544
- Course outline
- View the most recent course outline.
- Graduate Attributes Emphasised
- Communication, Critical thinking, Self-motivation.
View more information about Otago's graduate attributes. - Learning Outcomes
Students who successfully complete this paper will be able to:
- Demonstrate understanding of international financial theory and pertinent applications (e.g. exchange rate determinants, foreign exchange exposure, foreign direct investment, interest rate parity and the balance of payment).
- Develop a frame of reference through which to identify, evaluate and solve problems pertaining to international financial theory.
- Develop critical and analytical skills and the ability to work independently.
- Demonstrate communication and written skills.