This course presents the corporate uses of international financial markets to upper undergraduate and graduate students of business finance and financial economics. Combining practical knowledge, up-to-date theories, and real-world applications, this course explores issues of valuation, funding, and risk management. The course shows how theoretical applications can be brought into managerial practice. The course includes an extensive introduction followed by three main sections: currency markets; exchange risk, exposure, and risk management; and long-term international funding and direct investment. The course makes use of case studies to introduce each section, and each topic concludes with a CFO summary, in which students examinine how a hypothetical chief financial officer might apply topics to a managerial setting. Focusing on international markets and multinational corporate finance, this course is ideal for students seeking a complete understanding of the field.
1: Why Does the Existence of Borders Matter for Finance? 2: International Finance: Institutional Background. 3: Spot Markets for Foreign Currency. 4: Understanding Forward Exchange Rates for Currency. 5: Using Forwards for International Financial Management. 6: The Market for Currency Futures. 7: Do We Know What Makes Forex Markets Tick? 8: (When) Should a Firm Hedge Its Exchange Risk? 9: Measuring Exposure to Exchange Rates. 10: International Fixed-Income Markets. 11: Segmentation and Integration in the World's Stock Exchanges. 12: Putting It All Together: International Capital Budgeting.
Sercu, P. (2009). International finance: Theory into practice. Princeton University Press.