Study Guide

Objective

Students should be able to:
-describe the structure and function of international financial markets.
-explain how exchange rates are determined and understand their impact on international business and financial planning for multinational corporations.
-analyze and manage currency risks through various financial instruments such as forward contracts, options, and swaps.
-evaluate different financing options for companies involved in international trade.
-apply techniques to assess and value international investment projects.
-discuss the role and importance of global financial institutions, such as the IMF and the World Bank, in the international financial system.
-analyze the legal and regulatory frameworks governing international financial transactions and identify their impact on business decisions.
-identify and discuss ethical dilemmas and sustainability challenges in international financing, and propose measures to address them.

Content

Introduction to International Finance
Currency Markets and Exchange Rates
Currency Risk Management
International Capital Markets and Sources of Financing
International Investment Appraisal
Financial Decisions in International Firms
Global Financial Institutions
Regulation and Supervision of International Financial Markets
Ethics and Sustainability in International Finance

Qualifications

Basics of International Business
Financing and Investments

Assessment criteria, satisfactory (1)

Students:
-show a basic understanding of international financial markets and can describe the main actors and their roles.
-can describe the basics of the currency market and how exchange rates are determined.
-can identify different types of currency risks and describe basic tools for risk management.
-can describe the main features of international capital markets and identify different financing options.
-can describe the basics of capital budgeting and apply simple methods to assess international investments.
-can describe the basics of financial decisions within multinational companies.
-can describe the main tasks of global financial institutions such as the IMF and the World Bank.
-can describe the basics of international financial regulation and identify the key regulatory bodies.
-can identify basic ethical and sustainability challenges within international finance.

Assessment criteria, good (3)

Students:
-demonstrate a good understanding of the international market structure and can analyze the relationships between different market actors.
-can analyze factors affecting exchange rates and explain various exchange rate regimes with examples.
-can analyze and propose suitable risk management strategies to handle different types of currency risks.
-can analyze the advantages and disadvantages of various international financing sources and discuss their impact on capital structure.
-can analyze how multinational companies can optimize their financial decisions considering different financing options.
-can analyze and discuss the impact of financial institutions on international trade.
-can analyze how ethical and sustainability aspects influence international financial decisions and the company's reputation.

Assessment criteria, excellent (5)

Students:
-demonstrate a comprehensive understanding and can critically evaluate how market changes affect global financial flows and business decisions.
-can apply theories to understand the significance of exchange rates and assess their impact on international business decisions.
-show the ability to analyze and assess various risk management strategies, and critically evaluate their effectiveness in complex situations.
-can evaluate and analyze an appropriate capital structure and financing options for a multinational company.
-can conduct an advanced assessment of international investment projects, including a critical analysis of political, economic, and currency-related risks.
-can critically evaluate and recommend strategic financial decisions for multinational companies, considering complex international conditions.
-can critically evaluate and predict how global financial institutions may influence future international financial developments.