This subject introduces main concepts and methods associated with international financial decision-making for multinational business. Among the concept being covered is on the multinational financial management, foreign exchange, risk analysis and tools, financing foreign trade, international portfolio investment and corporate strategy. Topics include
• Introduction to Multinational Financial Management
• Determination of Exchange Rates
• International Monetary System
• Country Risk Analysis
• Foreign Exchange Market
• Currency Futures and Options Market
• Swaps and Interest rate Derivatives
• Financing Foreign Trade
• Cost of Capital for Foreign Investments
• International Portfolio Investment
• Corporate Strategy and Foreign Direct Investments
• Managing Multinational Financing System

Action Learning. Learning is achieved by engaging students in activities that have elements of problem solving combined with intentional learning.

Authentic Learning. Students will be presented with activities that are framed around "real life" contexts in which students will find learning more meaningful and motivating. Thus they will be more engaged in the process of acquiring knowledge.

Assessment strategy will be both formative and summative. Formative assessment strategies are used to test the current level of understanding and progress and to provide feedback to teacher and learner and to guide the next phase of learning. Types of formative assessments for this course will be discussions on tutorial questions, short quizzes and assignments. Summative assessment is used both in the mid and at the end of the programme formally to assess a learner’s skill, knowledge and understanding gained in this course.

For this module formative assessment will be undertaken through regular completion of tutorial work along with quizzes to check knowledge and understanding of basic concepts within accounting. To prepare students for the end of module summative exam, a mid semester test will take place under exam conditions.

Final Examination (duration 2 hours). This will be a closed book exam testing all learning outcomes - 100%
Learning outcomes 1, 2, 3, 4 and 5.

BUV VLE

Main Texts:
Shapiro AC (2005), Foundations of Multinational Financial Management, Fifth Edition, Wiley.

Additional Texts:
Eiteman, Stonehill and Moffet (2006), Multinational Business Finance, 11th Edition, Pearson.
Madura J (2006), International Financial Management, 8th Edition, Thomson.
Shapiro AC (2006), Multinational Financial Management, 8th Edition, Wiley.

1. CRITICALLY EVALUATE THE IMPORTANCE OF THE INTERNATIONAL MONETARY SYSTEM AND COUNTRY RISK
Knowledge and Understanding, Learning, Analysis, Reflection

2. ANALYSE THE METHODS OF FINANCING FOREIGN TRADES
Knowledge and Understanding, Analysis, Problem Solving

3. ANALYZE RISK MANAGEMENT FOR INTERNATIONAL TRANSACTIONS
Analysis, Problem Solving

4. EVALUATE DIFFERENT COST OF CAPITALS FOR FOREIGN INVESTMENTS INCLUDING THE IMPACT OF EXCHANGE RATES.
Problem Solving, Enquiry, Application

5. CRITICALLY APPRAISE THE IMPORTANCE OF INTERNATIONAL PORTFOLIO INVESTMENTS.
Analysis, Reflection.