International Financial Management
| Module title | International Financial Management |
|---|---|
| Module code | BEAM042 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff | Dr Jason CEN (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 120 |
|---|
Module description
Summary:
International Financial Management provides you with a conceptual framework within which the key financial decisions of the multinational firm can be analysed. The module focuses on decision making in an international context, building on, and extending, the valuation framework provided by domestic corporate finance to account for dimensions that are unique to international finance.
Additional Information:
Internationalisation
This module offers an intuitive and real world grasp of the concepts and issues in international finance. A wealth of examples is provided to enable you to see the application of the subject to business, mostly from a multinational corporation’s perspective.
External Engagement
We have external guest speakers in this module to deliver topics on current issues that are closely linked with the theoretical content covered in the course.
Employability
This module equips you with the advanced knowledge to be able to understand and evaluate a multinational corporation’s performance, financing and investment activities, and its risks and opportunities, in a global context.
Links to the academic literature are provided by a selection of articles from academic journals at the end of each lecture, which ensures that you are able to reflect on and evaluate issues and problems in the subject at a high academic level.
You will also develop team-working and presentation skills through seminar discussion on weekly practice questions.
Sustainability
The sustainable operation of financial markets relies on the fact that security prices reflect the fair value of the future cash flows that they promise to pay. This module addresses the issue of the fair value of financial securities in an international setting.
Module aims - intentions of the module
The aim of this module is to introduce you to the subject of international financial management. In particular, it provides you with an overview of the financial environment in which the multinational firm and its managers function, including financial institutions, financial markets and exchange rate systems. It provides you with a critical understanding of the principles of currency risk management, multinational financing and international portfolio investment.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. describe the environment in which international financial management is undertaken;
- 2. explain the different types of foreign exchange risk that a multinational firm faces and the principles of foreign exchange risk management;
- 3. explain and discuss the structure and the benefits and costs of international bond and equity markets for multinational firms;
- 4. explain and discuss issues concerning the currency risk management of multinational firms;
- 5. explain and discuss the main features of international portfolio investment.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 6. develop theoretical arguments based on analytical reasoning;
- 7. rigorously analyse problems in finance;
- 8. interpret financial data and problems in the light of established theories;
- 9. access a wide body of empirical research literature and critically appraise it.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 10. plan and manage their own study both individually and within a group;
- 11. make appropriate use of learning resources, including sophisticated computer datasets;
- 12. critically analyse problems arising in both academic and practical contexts;
- 13. effectively present the results of individual and collaborative projects as developed through the mode of instruction using both individual and group formative assignments.
Syllabus plan
- Introduction to the International Financial Environment
- Background of International Financial Markets
- Exchange Rate Determinants and Behaviour
- Currency Derivatives and Hedging
- Foreign Exchange Risk Measurement
- International Bond Market
- International Equity markets
- International Portfolio Investment
- Current Issues in International Financial Management (given by guest speakers)
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 32 | 118 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching Activity | 21 | Lectures |
| Scheduled Learning and Teaching Activity | 11 | Tutorials |
| Guided Independent Study | 118 | Reading, preparation for classes and assessments |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Problem sets | 20 minutes | 9, 10 | Correct answers |
| ELE quizzes | 45 minutes | 1-6, 9-13 | Oral and written model solutions |
| In-class group-based learning activities (quantitative and qualitative assignments, discussions, and presentation) | 50 minutes each x 5 | 1-13 | Oral feedback from the instructor and peer feedback in class |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 20 | 80 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Group coursework assignment | 20 | 1000 words | 1-13 | Written feedback |
| Individual Written Exam | 80 | 1 hour and 15 minutes | 1-8, 10-12 | Extensive solutions available on ELE after the exam |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Group coursework | Group coursework (20%) | 1-10 | Referral/Deferral Period |
| Individual Written Exam (80%) | Written examination (80%) 1 hour 15 minutes | 1-8,10-12 | Referral/Deferral Period |
Re-assessment notes
Deferral - if you have been deferred for any assessment, you will be expected to complete relevant deferred assessments as determined by the Mitigation Committee. The mark given for reassessment taken because of deferral will not be capped and will be treated as if it were your first attempt at the assessment.
Referral - if you have failed the module overall, you will be required to undertake reassessments as described in the table above for any of the original assessments that you failed. The mark given for a reassessment taken because of referral will be capped.
Indicative learning resources - Basic reading
Basic reading:
The following textbooks will be used in the course. However given the nature of the topics additional readings will be indicated wherever required.
Main Textbook:
Eun, C.S., & Resnick, B.G. (2023). International financial management (10th global ed.). New York: McGraw-Hill Education.
Other Textbooks:
Bekaert, G.J., & Hodrick, R.J. (2018). International financial management (3rd ed.). Cambridge: Cambridge University Press.
Indicative learning resources - Web based and electronic resources
A list of references and web resources will be made available on the ELE.
Indicative learning resources - Other resources
Lecture handouts will be based on related material from these texts and other references. Students are required to refer to original chapters in the texts assigned in the readings for each week. Copies of the main textbooks are available in the library. The core material relevant to the course can be found in relevant chapters of alternate textbooks, however with at differing levels of difficulty. Some topics require reading of published papers and articles. Full details of references for each topic will be distributed at the start of the course.
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | BEAM047 or BEAM072 |
| NQF level (module) | 7 |
| Available as distance learning? | No |
| Origin date | 01/09/2007 |
| Last revision date | 12/03/2024 |
