Course Description:
This course focuses on the international aspects of financial management. Particular emphasis is placed on the control of exchange rate risk and financing multinational corporations. Students will gain a working knowledge of the practical applications that integrate the theory, methods, and practice of international finance. Students will study capital flows, international financial environment, institutions and instruments, and foreign exchange operations. Also students will review the major aspects of investment decision making performed by multinational corporations, debt management, and the basics of exchange rate risk management.

Course Objectives:
Upon completion of this course, successful students will be able to:

• Discuss the environment of international financial management and how the foreign exchange markets operate.
• Describe the importance of foreign exchange risk management.
• Discuss the basics of hedging using derivative securities (futures, options, and swaps).
• Distinguish between accounting and economic exposures.
• Analyze how foreign operations are being financed and understand basic foreign investment analysis, including portfolio management and foreign direct investments.
• Discuss the working capital management process for multinational corporations.