nine

International Finance

Angaben gemäß SPO

Zugehörigkeit zu Curriculum

Bachelor Betriebswirtschaft | 5.3 | 5 Leistungspunkte

Bachelor Betriebswirtschaft | 6.3 | 5 Leistungspunkte

Modulverantwortung

Hammer, Dominik (Prof. Dr.)

Biswas, Rita (Prof. Dr.)

Prüfungsformen

ModA oder

Präs

Lehr- und Lernformen

S | 4 SWS

Lehrangebote WiSe 2024

S | 4 SWS

wird nicht angeboten

Prüfungsangebote WiSe 2024

Erstprüfer:in

Biswas, Rita (Prof. Dr.)

Zweitprüfer:in

Hammer, Dominik (Prof. Dr.)

Prüfungsform

ModA

Details zur Prüfung

Hilfsmittel

Voraussetzungen und Verwendbarkeit

Voraussetzungen für die Teilnahme

Verwendbarkeit

Inhalte und Qualifikationsziele

verabschiedet am 31.10.2024

Learning Goals:

Knowledge: (i) explain the characteristics and functioning of a multinational business enterprise and the foreign exposure risks it faces, (ii) apply appropriate techniques and tools to manage those risks, (iii) evaluate the various investment alternatives available with a specific capital budget, including valuing cross-border cash flows arising from projects and acquisitions of firms (iv) identify and analyze factors related to various financing alternatives as applicable to determining the cost of capital (v) manage the tax implications of conducting business in a global environment (vi) understand the differences in corporate governance issues around the globe.

Skills: (i) assimilate and apply the techniques learned through the theory and solve problems faced by real firms in the past, through case studies (ii) work in teams and demonstrate appropriate leader/follower behaviour (iii) address a mid-sized group, present and defend a case analysis (iv) write a brief report summarizing the key issues of the case study and make justifiable recommendations. Develop cross-cultural business communication skills through participation in a simulation game with multicultural team members working on a structured task.

Competence: demonstrate mastery of both the knowledge-objectives and skills-set objectives of this course through live cases analyses and presentations and defending critique.

Contents:

The objective of this course is to equip students with the tools necessary to manage corporations in a global business environment. It is a blend of theory and applications – the theory of multinational business finance is presented through lectures while applications are learned by the students through Harvard Business School cases analyzed and discussed in class and also analyzed by students outside class and presented in class.

The success of a multinational company continues to depend on its managers’ ability to recognize and benefit from imperfections in the various markets for the factors of production, financial assets and final products. As such, the theory of this course is designed to present an understanding of exchange rate fluctuations – its sources, its implications, the risks it might present for the business enterprise and the profit opportunities that might also be presented. Valuing a firm’s cross-border cash flows is an integral part of the course. The cases solidify the theory by presenting the managerial perspective.

Specific topics include the identification, measurement and management of transactions exposure, translation exposure, economic exposure, political and country risk. The global cost of capital and global capital budgeting is presented in details along with global working capital management. Finally, the course concludes with examining global corporate governance, the international tax environment, transfer pricing and valuing cross-border cash flows in the context of international acquisitions.

Module Overview:

1. Measuring and managing international exposure for an MNC 1.1.Translation (accounting) exposure
1.2.Economic (operating) exposure
1.3.Political risk exposure

2. Financing the global firm 2.1.The global cost of capital 2.2.Sourcing equity globally 2.3.Sourcing debt globally

3. Foreign investment decisions
3.1.Corporate strategy and foreign investment 3.2.Capacity hedging and real options
3.3.Principles of multinational tax arbitrage
4. Multinational capital budgeting & valuation 4.1.Principles of cross-border valuation of projects 4.2.Cross-border valuation of firms
4.3.Cross-border valuation of mergers & acquisitions 5. World Corporate Governance
5.1.Corporate Governance in the U.S.
5.2 Corporate Governance in Germany 5.3.Corporate Governance in China

Literature:

•International Financial Management,
o EUN, Cheol S., Bruce G. RESNICK and Tuugi CHULUUN, Ninth Edition, 2021

McGraw-Hill Irwin, Boston, MA. ISBN10: 1260013871, ISBN13: 9781260013870,

OR
o You may use an older edition of this text: Eun and Resnick: 2018, McGraw-Hill

Irwin, Boston, MA. ISBN10: 1259994058 | ISBN13: 9781259994050, OR
• International Financial Management, Bekaert, Geert, and Robert Hodrick, Third Edition, 2017, Cambridge University Press, New York, NY. ISBN: 978-1-107-11182-0. This text is strongly

recommended for students wishing to pursue graduate studies.

• The Financial Times