International financial management

This unit discusses the international aspects of financial management of multinational corporations (MNCs). Given their global operations, MNCs need to interact with the foreign exchange markets and other global financial markets which will be introduced in this unit. Topics covered include multinational companies and globalisation; foreign exchange markets; the parity conditions; currency derivatives; forex exposure and the management of transaction exposure; foreign direct investment and country risk; the fundamentals of capital budgeting; international capital budgeting and exchange rate effects; cost of capital and the capital structure for multinational companies; financing international trade; international cash management; and the contemporary trends in international finance.