In simplest possible terms, International Finance is a natural and logical extension of corporate finance and investments to the international domain. Given the explosion in cross-border trade and the fact that just the 200 largest multinational corporations (MNCs) account for as much as 30% of global GDP, it is a topic of major importance. For the most part, we will take the perspective of an MNC to understand the challenges they face and the business decisions they make. However, sovereigns (countries) and international organizations are important actors as well and we will spend some time exploring the institutional setting. Finally, at the heart of international finance lies currency exchange and basic knowledge of the associated mathematical and accounting operations is necessary to grasp the topic not just qualitatively but also quantitatively. Students should expect a good deal of calculations and have a basic grasp of Excel to succeed in the course.

Upon completion of the course you should be able to: 

Knowledge and understanding

1. Understand the institutional framework within which international payments are made and the movement of capital is accommodated.

2. Understand the construction and interpretation of the balance of payments.

Skills and abilities

3. Analyse the international capital and foreign exchange markets and the institutional framework within which exchange rates are determined.

4. Analyse international capital budgeting decisions.

Judgement and approach

5. Identify and evaluate foreign direct investment and international acquisition opportunities.

6. Evaluate and express well-considered opinions on issues relating to international financial management.