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Course Outline IFM

This document provides information on the International Financial Management course offered at St. Mary's University School of Graduate Studies MBA in Accounting and Finance Program. The course is taught by Simon Tareke Abay and examines topics such as foreign exchange markets, international investments, and financing of international operations. Students will learn how firms operate in the international financial environment and will be assessed through group assignments, presentations, and a final exam. The course aims to help students analyze foreign exchange rates, evaluate international investment decisions, and identify risk hedging strategies.

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Wedaje Alemayehu
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140 views3 pages

Course Outline IFM

This document provides information on the International Financial Management course offered at St. Mary's University School of Graduate Studies MBA in Accounting and Finance Program. The course is taught by Simon Tareke Abay and examines topics such as foreign exchange markets, international investments, and financing of international operations. Students will learn how firms operate in the international financial environment and will be assessed through group assignments, presentations, and a final exam. The course aims to help students analyze foreign exchange rates, evaluate international investment decisions, and identify risk hedging strategies.

Uploaded by

Wedaje Alemayehu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ST.

MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES
MBA in Accounting and Finance Program
Course International Financial Management (MAF612)
Course Instructor Simon Tareke Abay (Ass. Prof.) sharetosimon@gmail.com

Course Description
This subject examines foreign exchange markets, multinational working capital,
international investments and the financing of international operations. Students
learn how to understand, how firms operate in the international financial
environment.

Course Objectives

Upon successful completion of this course students should be able to:


 Analyze the foreign exchange market and its operation
 Forecast foreign exchange rate by considering the parity relationships between
spot and forward exchange rates, interest rates and inflation rates.
 Evaluate international investment decisions to ascertain whether a foreign
investment is viable.
 Analyze different ways of financing foreign operations through global capital
markets.
 Identify possible ways of hedging risks

Contents

1. Environment of International Business and Finance


1.1 International financial management defined
1.2 International monetary system
1.3 International financial system
1.3.1 Role of central banks
1.3.2 The role of international financial institutions
2

2. International Parity conditions


2.1 International Parity-An Overview
2.2 Exchange Rate Determination
2.3 Measuring Exchange Rate Movements
2.4 Parity Conditions
2.4.1 Interest Rate Parity Theory
2.4.2 The Purchasing Power Parity Theory
2.4.3 The Fisher Effect
3. Management of Foreign Exchange Exposure and Risk
3.1 An Overview of Foreign Exchange Exposure and Risk
3.2 Types of Exposure
3.2.1 Transaction Exposure
3.2.2 Translation Exposure/Accounting Exposure
3.2.3 Economic/operating Exposure
3.3 Transaction Exposure Management
3.3.1 Hedging Techniques/External Techniques
3.3.2 Operational Techniques/Internal Techniques
4. International Capital Budgeting
4.1 Nature of International Capital Budgeting Decisions
4.2 Difficulties and Importance of International Capital Budgeting Decisions
4.3 Methods of International Capital Budgeting
5. Working capital management in MNCs
5.1 Cash Management of MNCs
5.2 Management of Receivables for MNCs
5.3 Inventory Management of MNCs

Teaching and Learning Strategies

The course delivery methodology is designed to be student-centered in order to empower the


students and make them participate and active in the teaching learning process.
3

Mode of Assessment

Assessment 1 : Group Assignment/ including presentation/ – each group will be provided a


topic by the instructor.

Weighting 30%

Assessment 2 : Group Assignment/article review – each group will work on an article to be


submitted by the instructor. The review should be done based on a guideline to be provided.

Weighting 20%

Assessment 3 Final Exam

Weighting 50%

References:

Butler, K. C. 2000. Multinational Finance; Vikas Publishing House, New Delhi


Click, R. W. and Covel J. D.2004. International Financial Management-theory and practice;
Prentice Hall, New Delhi
Jeff Madura, 2000. International Financial Management, 6th edition, South Western College
Publishing
Justin Paul, 2007, International Business, John Wiley & Sons Inc
Mason Carpenter and Sanjyot P. Dunung, 2001, International Business: Opportunities and
Challenges in a Flattening World, New Edition
Michael B. Conolly, 2007, International Business Finance, 1st edition, Routledge, NY and
London
Ricky W. Griffin and Mickael W. Pustay, 2001, International Business, 7th Edition, John Wiley
& Sons Inc.
Shapiro A. C. 2014. Multinational Financial Management; 10th edition. John Wiley &
Sons, Inc.

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