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.

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